Travelport Holdings, the parent of the Travelport operating company, extended a deadline for loan holders to vote up or down its terms on extending PIK loans through 2016.
The original deadline was Sept. 27 at 5 p.m. EST and the new crunch time is two days later, Sept. 29 at 5 p.m.
Travelport Holdings needs a unanimous "yes" vote to get the terms approved.
Travelport Holdings has secured an agreement in principle on newly amended loan terms with lenders holding the majority of the principle of the $715 million in payment-in-kind loans, and Travelport says it will enter into a Chapter 11 bankruptcy proceeding if it doesn't obtain the required unanimous approval.
Meanwhile, the counsel for holders of 25% of the outstanding senior notes wrote a letter to Travelport Sept. 22 contending that any agreement that Travelport makes regarding restructuring "will result in one or more defaults."
Travelport Holdings says it disagrees with the September 22 and subsequent Sept. 27 letter from Dewey & LeBoeuf LLC that it would be in default.
The Chapter 11 scenario is clearly an attempt to line up all the loan holders for a unanimous vote on the new loan terms.
All of this occurs as credit agencies have downgraded Travelport's ratings.
Travelport Holdings claims that a Chapter 11 filing would have no impact on Travelport Ltd., the operating company.