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Re: MyTravel Group plc; Statement on Behalf of the Ad Hoc Convertible Bondholder Committee.

LONDON -- The ad hoc convertible bondholder committee (the "Committee") of holders of MyTravel Group plc's GBP 216 million 7% Convertible Bonds due 2007, represented by Cadwalader, Wickersham & Taft LLP and Houlihan, Lokey, Howard & Zukin (Europe) Limited, has authorised the following statement on the Committee's behalf.

"The Committee notes the decision of Mr. Justice Mann today in the High Court that the scheme of arrangement originally proposed by MyTravel is unlawful, and that he is unwilling to allow it to proceed. The Committee is disappointed that it was not informed of the existence of MyTravel's alternative scheme of arrangement in advance of MyTravel's announcement to the High Court and to the market that it was intending to submit that alternative this afternoon. The result is that the Committee, as well as any other interested party, is not precluded from raising any objections to the new scheme at any stage of the proceedings, and the Committee will consider its options in this regard carefully. In any event, the Committee disputes the judge's finding that bondholders have no present interest in the company's assets, and does not consider that the company can lawfully dispose of all its assets without making provision for the claims of bondholders.

The Committee notes that the Company intends to rely on this finding, made in relation to the unlawful scheme, for the purposes of seeking approval of the new scheme. The Committee believes that this finding involves important issues of principle for all holders of publicly traded debt securities (whether high grade or high yield) in the European bond markets. The Committee has resolved to continue its fight to protect the rights of MyTravel's bondholders in the Court of Appeal notwithstanding the fact that it has always preferred to seek a consensual, rather than a court based, outcome with MyTravel."
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Publication:Business Wire
Geographic Code:4EUUK
Date:Nov 24, 2004
Words:302
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