Friendly shareholders back rescue plan
22 January 2001
Shareholders of Friendly Hotels have backed plans to re-organise the company in order to stave off possible insolvency.
Friendly now plans to sell off 13 "non-core" hotels and concentrate on franchising, which requires less capital.
It will also look to appoint a new chief executive with appropriate hotel industry experience and re-organise its bank loans and share structure.
Announcing the proposals just before Christmas, Friendly warned that if shareholders failed to back the package, the company could become insolvent.
