Carlyle and GIC are believed to argue that coronavirus and the collapse of business travel globally have materially altered the deal’s conditions, and thereby allow them to walk away.
The three companies believe that WEX had assumed all of these risks when it signed the Purchase Agreement.
It’s worth about USD 15 million in equity and debt at a valuation of about USD 110 million.
With more than 60 locations across the globe, the company’s pitch was well received.
The company adds that it has more than 18 months of liquidity available at a zero booking rate.
While PPP loans help hoteliers keep properties open in the U.S., government assistance programs elsewhere in the world still offer a boost to the travel industry.
In China, occupancy as of May 4 was approximately 40 percent, up from about 9 percent in early February.
They aim to seize control and build alternative, but it’s more difficult than they think.
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