in february 2012, dic had to prepare a bailout package due to a large debt of £478 million that was added to travelodge's balance sheet following its purchase; despite significant earnings since 2006, these could not cover the debt repayments and the company recorded a debt of £517m in 2011. the company undertook a financial restructure during april 2012, with ownership passing to new york-based hedge funds goldentree asset management and avenue capital group, as well as goldman sachs. on 17 august 2012 travelodge uk confirmed that the financial restructuring would be through a company voluntary arrangement which would include: