A U.S. bankruptcy court judge on Friday approved travel management firm CWT’s plan to emerge from Chapter 11 Connecticut bankruptcy, a day after TMC filed a petition, the company said on Friday. The court approval appears to put CWT on track to complete the financial recapitalization process it announced in September, including the prepackaged Chapter 11 filing.

In a statement issued Friday night, CWT said its plan had “the overwhelming support of CWT’s financial stakeholders” and would wipe out about half of its debt.

“We are delighted to have received early court approval of the agreement we have reached with CWT’s financial stakeholders, which positions the company for long-term success and provides significant financial resources to continue the business. growth and development of our business, ”said Michelle McKinney Frymire, CEO of CWT. Friday’s statement.

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CWT had prepared the Chapter 11 bankruptcy petition to expedite the closing of the restructuring and recapitalization deal, and filed it in a U.S. bankruptcy court in Texas on Thursday. A pre-defined process is a process in which debtors and creditors agree to restructuring terms before Chapter 11 filing. The company said in September that the recapitalization deal plan will replace existing debt of $ 1.5 billion. of CWT with new senior debt of $ 625 million and unused revolving credit facility.

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CWT announced Friday that the plan would raise $ 350 million in new equity in its business and announced $ 100 million in product development, including improving its myCWT travel management platform.

“Having reached this milestone, we are now in a position to move beyond the pandemic and accelerate investments that create innovative programs and cutting-edge experiences, including an enhanced myCWT platform,” said McKinney Frymire in the press release. “As business travel continues to recover, we look forward to building on our momentum, continuing to advance our strategic priorities for the benefit of our customers, partners and other stakeholders, and delivering exceptional experiences to our customers, travelers and participants. ”

The TMC said the investment would also be focused on “increasing CWT’s existing omnichannel experience, allowing it to continue its track record of strong growth before the pandemic and enhancing the existing sustainable solutions it offers to its customers and their travelers, “a process that” will include expanding the breadth and depth of CWT’s omnichannel content, travel comparison capabilities, analytical reporting, and the choice and availability of travel solutions. sustainable to further improve the point-of-sale experience for travelers and carbon footprint details to enable better information decision-making. ”

Further details will be forthcoming, according to CWT.

RELATED: CWT prepares prepackaged Chapter 11 filing

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