Business travel giant CWT has gained approval for a financial overhaul first mooted in September.

Under the plans, the company will receive $350 million in fresh funding as it battles to overcome a slowdown in travel caused by the Covid-19 pandemic.

The decision comes after Minneapolis-based CWT filed for Chapter 11 bankruptcy protection in order to push through the restructuring.

The plan agreed by a court on Friday provides the company with the new equity to reinvest and enables all business partners and other providers of goods and services to CWT to be paid in full.

The recapitalisation, including halving its $1.6 billion of debt, was approved in what was described as an “expedited legal process” with the “overwhelming support” of financial stakeholders.

Michelle McKinney Frymire, CWT chief executive, commented: “We are pleased to have received prompt court approval of the agreement we reached with CWT’s financial stakeholders, which positions the company for long-term success and provides significant financial resources to further grow and develop our business.

“As business travel continues to recover, we look forward to building on our momentum, continuing to advance our strategic priorities for the benefit of our customers, partners and other stakeholders, and delivering exceptional experiences for our customers, travellers and attendees.”

Kirkland & Ellis LLP is serving as legal adviser, Houlihan Lokey is serving as financial adviser, AlixPartners LLP is serving as restructuring adviser and Shearman & Sterling LLP is serving as corporate finance counsel to CWT in connection with the recapitalisation process.