Travelport Plan to Pay Interest In-Kind Faces Lender Pushback

Certain lenders to Travelport Worldwide Limited are decrying a loan amendment proposal by the company that asks to approve an option of deferring interest payments while leaving the interest rate on a lower-ranking loan untouched, according to people with knowledge of the situation.

The request from the online travel services company comes as investors have grown worried about the company’s liquidity amid ongoing pandemic-related earnings disruptions. Travelport is also asking for the ability to issue $200 million of lower-ranked debt, the people added.

A representative for Travelport declined comment. Its private equity owners, Elliott Investment Management and Siris Capital Group ...