Creditors of Travelodge, the budget hotel chain, yesterday voted in favour of the proposed Company Voluntary Arrangement (CVA). Some 97% of creditors voted in favour of the proposed restructure of the company's property portfolio, however M&C Report understands that there is an outside chance that an appeal to the courts may be lodged by the dissenters, which included one unnamed former MP, to the CVA. The yes vote will enable Travelodge to tackle the underlying problem of its unsustainable lease burden, which was weighing down the business. It also means that £709m of debt will be written off and new equity of £75m provided by the lenders. Richard Fleming, UK head of restructuring at KPMG, and supervisor of the CVA, said: “This will finance a £55m refurbishment programme across 175 of the business’s hotels, a move which will benefit customers and landlords alike.” Brian Green, restructuring partner at KPMG, said: “We are pleased that landlords have recognised that the CVA will deliver a better return to them and estimate creditors will receive a return of 23.4p in the £1, versus the 0.2p in the £1 they would have received if the business had been forced into administration. "Following our work on the Fitness First CVA we have listened to the views of landlords and incorporated their feedback into this proposal. This includes a clawback clause to enable landlords to share in the turnaround of the business, and the assurance that the company will pay the business rates on the affected properties until replacement occupiers are found. "We are also offering landlords the option to extend their lease terms, which has not been offered in a CVA before and is an addition designed to offer as much value to landlords as possible. "Travelodge now has the structure and finance it needs to move forward and this is thanks to the ongoing support of its creditors."