Travelport wants to prevent lenders from taking over the business

Travelport Worldwide Ltd. asks court to prevent lenders from foreclosing money or taking control of the business over dispute with Elliott Management Corp., warning of possible bankruptcy if they are not restrained by an injunction .

The Elliott-backed reservation platform filed documents in New York state court on Monday seeking to prohibit lenders from declaring more than $ 3 billion in debt immediately due and payable or exercising other rights arising from an alleged default of payment.

Without such an order, Travelport said lenders could cut off access to cash, oust board members and force the company into defensive bankruptcy. Typically, lenders rarely invoke their collateral rights against companies as large and in debt as Travelport. A company filing for bankruptcy is unlikely, in part because of the costs and risks of a Chapter 11, according to people familiar with the litigation.

The lenders were locked in a dead end with Travelport for months after the company moved valuable assets out of reach to secure a $ 1 billion bailout loan.

Travelport said the lifeline, which came from shareholders Elliott and Siris Capital Group LLC, provided much-needed cash to weather the decline in passenger flight bookings due to the coronavirus pandemic.

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