Thomas Cook urgently seeking extra funds to seal rescue

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Thomas Cook urgently seeking extra funds to...
Added: 20-09-2019 03:11

Travel firm Thomas Cook are urgently trying to satisfy a demand to find £200 million in additional funding before it runs out of cash.

Lenders told Thomas Cook it needed the extra money as a contingency to see it through the winter, this on top of a £900m package that was close to being finalised.

Thomas Cook said the £900m would be enough to help the company avoid bankruptcy as it heads into winter, when holiday bookings are at their lowest. However its lenders have insisted that the company needs extra contingency funding to keep it going through the quiet trading period.

Failure to secure the funding could result in the collapse of the 178-year-old global travel group with the potential of tens of thousands of holidaymakers in resorts across the world.

Thomas Cook holidays are protected under the ATOL (Air Travel Organiser's Licence) which means travellers on package holidays do not lose their money or become stranded abroad if a travel agent collapses. If the travel agent fails prior to the holiday then the scheme will provide a replacement holiday of equal value, or a refund.

Thomas Cook confirmed a meeting to agree the terms of a £1.1 billion rescue package with lenders has been pushed back until the end of September.

A vote was due to take place last Wednesday but the travel giant has secured more time to negotiate terms.

A statement from the company said: “As part of the process to finalise the full commercial terms between Thomas Cook Group’s creditors and stakeholders, the Scheme Meetings and the Schemes Sanction Hearing relating to Thomas Cook Group’s proposed recapitalisation will take place on the 27 and 30 September respectively."

It added “The Company continues to target implementation of the recapitalisation in early October.” Thomas Cook stressed there could be “no assurance” the plan will be implemented.

The travel company plans to sell 75 per cent of the tour operating business and 25 per cent of its airline to Chinese company Fosun - the company's current largest shareholder.

[File Photo]

Added: 20-09-2019

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Thomas Cook urgently seeking extra funds to seal rescue

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