Moran Hotels To Write Down €700m Debt
Published on Dec 16 2013 11:56 AM in Hotel
Reports in the weekend's papers suggest that Irish hotel chain the Moran Group are close to securing a debt-for-equity deal with its lenders over the €700 million that it owes.
According to the Sunday Business Post, a deal to write down the debt is "likely to be signed within the next 48 hours, and involves the chain ceding significant equity to its lenders".
The Moran Group operates ten hotels in Ireland and Britain, including the flagship Red Cow in Dublin (pictured) and London's Crown Moran. It ran up large debts following the purchase of Bewley's Hotel Group at the height of the Irish property boom.
Currently, AIB and Bank of Ireland control 60% of the hotel group's debt, while Californian hedge fund Canyon Capital have 40%.
In 2011, it paid interest of €37 million on its debts, more than the €24 million in earned in operating profit.