Travel management company CWT is preparing a prepackaged bankruptcy filing, reports Travel Weekly sister publication The Beat.
The filing is part of CWT's plan to complete a recently announced recapitalization agreement, the terms of which will include an equity capital infusion of $350 million and the elimination of almost $900 million in debt.
The Beat also reported that by opting for a prepackaged, court-supervised process -- which allows CWT to negotiate with creditors prior to filing for Chapter 11 -- CWT will be able to "implement the agreement on an expedited basis."
As part of CWT's recapitalization plan, the company's financial stakeholders have pledged to support CWT with "substantial long-term liquidity," as well as ensure all business partners and other providers of goods and services are paid in full.
In a statement, CWT CEO Michelle McKinney Frymire said the strategy will provide "significant financial resources to further grow and develop" CWT's business moving forward.