IATA has released a $65 million security guarantee that had been held against Corporate Travel Management and restored the company's previous settlement cycles, Business News Australia reported. The restoration is expected to improve CTM's working capital by approximately $30 million.
The security and settlement arrangements now being unwound were introduced in December last year. Airlines and travel agents use the BSP to report, bill and settle ticket sales, and CTM's access to it was contingent on maintaining the security guarantee while its accounts were under review. The FY25 accounts were delayed by forensic work related to accounting issues at the UK operation, which also led to a trading suspension.
According to an independent investigation, CTM's former UK chief executive forged customer agreements, overcharged clients and held back funds that belonged to those clients. The UK problems produced a customer-related liability of $260 million as at 30 June 2025, with that figure forecast to decline to $234 million a year later.
When FY26 results were released, roughly 78% of total refunds had either been settled or were nearly finalised, while $55 million remained to be remediated. The prior year loss was $348.5 million, driven by $357.7 million in goodwill impairments.
A trading suspension began on 26 August 2025 and shares resumed trading on 3 September this year, one day after the company filed its FY26 results. In December 2025, CTM was dropped from the S&P/ASX 200 index. After founder Jamie Pherous left all executive and board roles, Ana Pedersen took on the acting CEO position in February and was confirmed in the job permanently on 23 July this year.
The CTM share price climbed as much as 28%, with the stock peaking intraday at $3.18. By 3.25pm AEDT, the stock had settled at $3.01, still 21% above the prior close.
Before the trading suspension, CTM shares last traded at $16.05, valuing the company at $2.35 billion. Even after the share price rise, CTM stock remains approximately 81% below that level.
With $55 million in client refunds still outstanding, CTM has access to $175 million in committed facilities from PEP Credit designated for remediation payments. CTM's July revenue in FY27 came in at roughly $53.3 million, compared with $58.3 million in the prior corresponding period.
Reporting: Business News Australia, The Motley Fool Australia
Written by Pick & Scroll News from the reporting and documents linked above.
