CTM Announces $29 Million Liability and $89 Million Impairment Ahead of FY25 Results

New Financing to Support UK Client Remediation

Corporate Travel Management (ASX:CTD) has secured a $175 million debt facility from Pacific Equity Partners Credit (PEP Credit), significantly expanding its borrowing capacity ahead of releasing its FY25 and 1H26 financial statements. This new facility replaces the company’s existing $75 million corporate facility and is intended to fund remediation obligations to UK customers alongside ongoing business needs.

The financing package also includes a $65 million bank guarantee facility and ancillary transaction facilities provided by CTM’s existing lenders to support day-to-day operations. CTM estimates that, based on current interest rates and expected drawdowns, its annualised cash interest costs will be approximately $20 million for both FY27 and FY28.

Financial Impact of UK Contract Reviews and Impairments

CTM has completed its review of contractual arrangements in the European segment, which has resulted in the recognition of a $29 million liability as at 30 June 2026 related to air margin revenue under certain UK customer contracts. This follows ongoing negotiations with key UK customers over remediation obligations, which remain a significant focus for the company.

On the impairment front, CTM expects to record an $89 million impairment in its ANZ segment. The company confirms no changes to previously disclosed goodwill impairments in its North American and European segments. These adjustments reflect the continuing challenges CTM faces in these markets.

Conditions and Covenants Attached to New Facilities

The new debt facilities are subject to a limited number of conditions, including the release of CTM’s FY25 financial statements without a going concern audit qualification. The facilities mature on 1 July 2028, with provisions for extension or early repayment subject to customary make-whole clauses.

Security for the new debt is senior secured under a common security trust arrangement with CTM’s existing bank syndicate. The facilities include financial covenants on leverage and interest cover ratios, as well as review events linked to liquidity, customer relationships, litigation, governance, and operational funding capacity.

Leadership and Investor Engagement

CTM’s Managing Director and Group CEO, Ana Pedersen, described the financing arrangements as a key step forward, providing greater certainty as the company finalises its financial reporting and addresses historical issues. The company has appointed Barrenjoey and Morgans Financial Limited to assist with investor engagement during this period.

With the FY25 and 1H26 financial statements due on or before 28 August 2026, and the FY26 audit progressing well, CTM aims to provide further clarity on its financial position shortly. The market will be watching closely how these new arrangements influence CTM’s liquidity and operational stability going forward.