Selina, a London-based hospitality company
targeting millennial and Gen Z travelers looking to “stay, travel and work
abroad indefinitely,” said Monday it “no longer has any reasonable prospects of
avoiding an insolvency.”
The announcement
came in a filing with the United States Securities and Exchange Commission by
the company that was founded in 2014 and went
public in a SPAC deal in October 2022 that valued the company at $1.2
billion.
The SEC filing
states the Selina board has appointed administrators that have assumed management
of the company and that are exploring options including a sale of “some or all
of the operating subsidiaries and other assets of the group.” It also said it
expects to be delisted from the Nasdaq.
Subscribe to our newsletter below
On July 18, Selina
alerted the SEC that it had failed to repay a $50 million loan to the
Inter-American Investment Corporation, IDB Invest.
According to the
statement, IDB invest said this entitles it to “enforce its rights against the
collateral and guarantees that secure the IDB Facility. IDB Invest currently
holds collateral arrangements over many of the group’s assets in Latin America
and an event of default under the IDB Facility could trigger cross-defaults
under other loan facilities and/or note indentures with the Company and other
companies within the group.”
In May Selina reported its preliminary financial information
for the full year 2023 and first quarter of 2024 and reported total revenue
last year of $201 million, up 9% compared to 2022. As of April 2024, the
company had 102 open hotels in 22 countries, and occupancy in 2023 was 52.3%.