CWT to Invest $100 million in Technology and Innovative Products as Recapitalization Plan is Approved
TMC says it will move forward with strengthened balance sheet and $350 million of new equity capital >>
by: Harvey Chipkin
CWT, the travel management company, has gained approval from the courts for a financial overhaul that will see the company receive $350 million in fresh funding as it works to recover from the impact of the pandemic. The decision came a day after the Minneapolis-based TMC filed for Chapter 11 as part of an effort to facilitate the restructuring. According to a statement, the company will invest $100 million in the myCWT travel management platform and innovative product offerings as it moves forward to implement the previously announced recapitalization plan. That plan was approved (“confirmed”) by a court, according to a statement, in an expedited legal process with the overwhelming support of CWT’s financial stakeholders. The recapitalization plan provides CWT with $350 million of new equity capital to reinvest in the business, eliminates approximately half of the company’s debt and provides for all business partners and other providers of goods and services to CWT to be paid in full.
Michelle McKinney Frymire, CWT’s CEO, said the company was “pleased to have received prompt court approval of the agreement we reached with CWT’s financial stakeholders, which positions the company for long-term success and provides significant financial resources to further grow and develop its business.” She said that having reached this “important milestone,” CWT is now able to move beyond the pandemic and accelerate investments that create innovative programs and industry-leading experiences, including an enhanced myCWT platform. The initial $100 million investment in myCWT and its innovative product offerings, said the statement, will be focused on augmenting CWT’s existing omnichannel experience, enabling it to continue its pre-pandemic track record of strong growth, and enhancing the existing sustainable solutions it provides for its customers and their travelers. This will include expanding CWT’s breadth and depth of omni-channel content, travel comparison capabilities, analytical reporting, and choice and availability of sustainable travel solutions to further enhance the point-of-sale experience for travelers and carbon footprint details to enable better-informed decision-making.