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Travelport Worldwide, the global bookings operator controlled by activist investor Elliott Management and private equity firm Siris Capital, is willing to unwind a deal criticized by its creditors, but only if they agree to take a loss on their loans.

In a bid to save their control of Travelport and help their efforts to raise cash for the business, Elliott and Siris moved intellectual property to an unrestricted subsidiary, out of the reach of the company’s creditors. The maneuver irked lenders, which are threatening to declare a default and initiate litigation.

To settle the dispute, Elliott and Siris over the weekend proposed a deal to creditors that would see the asset move undone in exchange for lenders agreeing on a debt swap compromise, people familiar with the matter told Bloomberg.

Elliott and Siris want creditors to come up with $500 million in new money and to roll up some of their existing loans at a steep discount. The price of the exchange would be a little higher than the current trading level of roughly 58 cents on the dollar on the company’s $2.8 billion first-lien debt, the people noted.

The creditor group last week sent a notice of default to Travelport and could reject the proposal, instead opting for accelerated debt repayment, the sources added.

Travelport has been battered by the coronavirus-induced lockdowns. The company is also under pressure to complete the $1.7 billion sale of two of its payments businesses to technology firm Wex, which is looking to walk away from the deal.

Elliott and Siris purchased Travelport, which provides back-end support for airlines’ online sales platforms, last year in a deal valued at $4.4 billion, including $2.4 billion in debt. The transaction was inked at $15.75 a share, a premium of just 2% over the unaffected share price.