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Lenders reject control pitch from CarTrawler owner

 

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Restructuring: CarTrawler

Restructuring: CarTrawler

Restructuring: CarTrawler

BC Partners Holdings, the majority owner of Irish travel software firm CarTrawler, is facing opposition from lenders in its quest to keep control of the company.

CarTrawler's creditors have rejected a proposal from BC Partners which would have allowed the private-equity firm to keep control despite the creditors taking losses, according to people with knowledge of the matter who asked not to be identified because the negotiations are private.

The lenders are exploring alternative restructuring proposals that would hand full control to them and see the company receive fresh cash, the sources said.

CarTrawler was founded by Irish brothers Niall and Greg Turley in 2004 and expanded its operations into 150 countries worldwide.

They made around €80m from the 2011 sale of a stake to ECI but kept a 25pc stake.

The Turleys exited the business in 2014 when BC Partners and minority investor Insight Venture Partners acquired the Dublin-based firm using €160m of buyout financing.

Alcentra and Guggenheim Partners are the company's largest creditors, according to data compiled by Bloomberg.

Last year, the sponsors attempted to sell the business, which runs software matching flights with car hire offers. They have now been forced to seek rescue financing after a covenant reset last year and as the travel company struggles under the impact of coronavirus lockdowns.

Representatives for BC Partners and Alcentra declined to comment. Spokespeople for Insight Venture Partners and Guggenheim did not respond to a request for comment.

Representatives of CarTrawler could not be reached for comment.

Bloomberg

Bloomberg