The group, founded by Jersey resident David Crossland and formerly known as Airtours, is to offload its Oasis Lakes resort and development land in Orlando to American residential and leisure property group Bluegreen Vacations.
yTravel said it would use the proceeds of the sale after expenses to reduce its net debt, which was £628.
million at 31 March.
he Manchester-based group is currently in talks with bondholders in an effort to secure its future after seeing the impact of the US terror attacks and accounting problems force it into the red.
The group’s businesses include the Going Places high street travel agencies and Birmingham-based low-cost airline MyTravelLite.
yTravel had planned to build 650 two- and three-bedroom villas at Oasis Lakes when it bought the 54-acre site in 1999.
It built 70 of the apartments and a clubhouse and swimming pool, but has since decided not to continue with the scheme.
luegreen plans to develop the site fully and to build a hotel.
MyTravel will receive an initial £12.
million for the resort and up to £900,000 more on the resolution of outstanding planning issues.
It will receive a further sum of up to £1.
million if Bluegreen, part of US-listed Bluegreen Corporation, builds more units on the site than anticipated.
risisLast month MyTravel unveiled half-year losses of £617.
million after writing down the value of some assets.
Prior to those exceptional items, losses widened to £282.
million from £150.
million a year earlier as the Iraq crisis took its toll on bookings.
ast week it outlined the possible terms of a deal with bondholders aimed at securing its future.
he company has already signed a £1.
billion refinancing deal with its bankers, but still needs to agree terms on £220 million worth of bonds.