ao link
0 £0.00
This item was added to your basket
Credit Strategy homepage
LinkedIn
Twitter
Intelligence, Insight and community for responsible professionals in credit

Tourism group Thomas Cook in race to secure rescue funds

Tour operator Thomas Cook is working to secure £200m in funding as it seeks to stave off a potential collapse which many fear could occur over the weekend.

Its creditor banks, which include the Royal Bank of Scotland (RBS) and Lloyds, are insisting the company establishes contingency funds to give it headroom during the winter months.

 

In an update to investors, the Thomas Cook said it hoped to seal a rescue deal with “a range of stakeholders” including its largest shareholder, Chinese conglomerate Fosun.

 

Fosun’s other interests include Club Med, Cirque du Soleil and Premier League football club Wolverhampton Wanderers.

 

The company added that the recapitalisation is expected to result in existing shareholders’ interests being “significantly diluted”, with significant risk of no recovery.

 

The £200m it is currently seeking is on top of a previously-announced £900m injection of new capital from Fosun, its banks and other investors.

 

Should the business collapse, around 150,000 holidaymakers would be left stranded, meaning a huge repatriation operation would be required.

 

Thomas Cook currently employs 22,000 people, 9,000 of which are based in the UK.

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees

GET THE LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

The Credit 500 for 2021 has been revealed – with a new focus on gender diversity

The Credit 500 for 2021 has been revealed – with a new focus on gender diversity

Virgin Media and 02 merger gets provisional green light

Virgin Media and 02 merger gets provisional green light

“The ability of humans to adapt is fantastic”

“The ability of humans to adapt is fantastic”

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group