Travelodge will meet with landlords and creditors today to ask them to agree to a company voluntary arrangement (CVA), which allows a firm to shrug off some of its debts to continue trading.
The hotel chain operates 500 hotels and employs 6000 people, but it is also nearly a billion pounds in debt.
Under the deal 50 hotels will be sold, 100 will cut payments to landlords by 25% and 350 of them will be unaffected.
Richard Fleming, who is head of restructuring at KPMG which has crafted most of the CVAs on the High Street, spoke to the Today programme's business correspondent Simon Jack about what a CVA could mean for the company.
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