A large majority of creditors have agreed to the terms of a Special Revitalisation Plan for Tivoli Hotels & Resorts.
In a statement, the company says it now awaits "the procedural steps for the plan's approval."
The hotels in the group, including at key sites in the Algarve, continue to operate as normal while behind the scenes the company’s finances can be rearranged.
The management also commented that 2015 is expected to be "a year of very satisfactory activity" for the company.
The chairman of the hotel group pointed out today that the Special Revitalisation Plan "results from the negotiations held with the main creditors and the investor, Minor Hotel Group, operating as Minor International Plc," or MINT.
A relieved chairman Alexandre Solleiro commented that the plan "ensures the sustainability and the future development of the brand and of the Tivoli business, safeguarding the best interests of creditors, business partners and employees of Tivoli Hotels and Resorts."
In business for over 80 years, Tivoli Hotels & Resorts has 14 units in Portugal and Brazil, including Hotéis Tivoli SA and Marinotéis SA.
In early January, the Tivoli Hotels & Resorts said it had applied for a Special Revitalisation Plan for Tivoli and Marinotéis Hotels, following the insolvency of the Grupo Espírito Santo shareholder Rioforte Investments (Luxembourg) and later announced the purchase by MINT of six hotels in the Tivoli group, two in Brazil and four in Portugal.
According to details released at the time of the Thai company's investment, an investment of €168 million was made to allow MINT to "expand in Brazil, the main destination in South America and a regional economic power, as well as making purchases of strategic assets of well positioned hotels in Portugal."
MINT’s acquisition of the investment fund managed by GNB Asset Management (formerly ESAF - Espírito Santo Financial Assets), included freeholds of the Tivoli hotels in Lisbon, the Tivoli Marina Vilamoura, Tivoli Carvoeiro and the Tivoli Marina Portimão and an agreement that MINT would continuing to lease these properties to Tivoli Hotels & Resorts and keep operating under the Tivoli brand.
Bondholder relief may be short lived
Another Special Revitalisation Plan, this time for Espírito Santo Property, was approved in court on Friday May 22nd based largely on an April agreement by the company's creditors.
The plan lays out a schedule of debt repayments stretching to 2020 and included settlement for 370 investors in the company’s commercial bonds, many of these investors having been duped in BES branches into buying what they were told was a ‘safe’ investment.
Earlier this week most of the real estate assets of Espírito Santo Property were seized by the court as a precaution in the ongoing investigations to whole sorry Espírito Santo affair and it is not yet known how this seizure will affect the revitalisation plan.
