The Corporate Travel Management Ltd (ASX: CTD) share price remains suspended but that hasn't stopped the company announcing that it has reached agreements with 86% of its key impacted UK customers and confirmed the major terms of its customer remediation process.
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What did Corporate Travel Management report?
- Secured binding offers from UK customers covering GBP 102 million out of a total estimated GBP 118 million liability
- Will refund GBP 87 million to these customers, with GBP 11 million already paid
- Remaining GBP 76 million to be refunded on a staged basis through to 30 September 2027
- Agreed to pay GBP 12 million to settle further UK contract uncertainties, including GBP 6 million for 1HFY26
- Continues final negotiations with customers accounting for GBP 16 million of the remaining liability
What else do investors need to know?
The company is in advanced talks with lenders to secure financing for both its client remediation obligations and ongoing business needs. These funding arrangements are expected to be announced soon.
These agreements are a significant step forward in resolving historical issues within CTM's UK operations, helping pave the way for the release of FY25 audited financial statements. Final negotiations with a small number of remaining UK customers are progressing.
What did Corporate Travel Management management say?
Ana Pedersen, Managing Director and Group CEO, said:
Reaching agreements with impacted UK customers representing 86% of the total estimated liability is a major milestone for CTM and reflects our commitment to doing the right thing by customers. These outcomes are the result of months of constructive engagement between CTM, its advisers and affected customers, whose cooperation and support throughout this process has been greatly appreciated.
Importantly, these agreements demonstrate that we can address legacy matters responsibly while continuing to deliver the high-quality service and support our customers rely on for their travel needs. We remain focused on completing the remaining steps required to seek reinstatement of CTM's shares to trading on the ASX and look forward to updating shareholders on our progress.
What's next for Corporate Travel Management?
CTM expects to finalise negotiations with the few remaining clients in the coming period, clearing the path to resolving its UK business issues. The company is also seeking to secure new financing and aims for reinstatement of its shares on the ASX once all requirements are met.
Management has indicated it will continue working closely with stakeholders to maintain service quality and restore confidence among its shareholders and clients.
Corporate Travel Management share price snapshot
Over the past five years, the Corporate Travel Management share price has lost 25% of its value.
