Thomas Cook shares fall 20% as it confirms £200m cash demand

12

Shares in Thomas Cook plummeted 20% on Friday after it issued a statement confirming it needed to find an extra £200m to plug a financial hole.

The troubled travel company has been bombarded with queries from concerned holidaymakers after Sky News revealed the firm was frantically seeking to raise additional cash to fill a gap in its finances.

It follows a demand by lenders to secure new standby funding on top of the £900m already raised in a proposed deal headed by its leading shareholder Fosun Tourism Group, the Chinese owner of Club Med.

Image: The firm's failure would trigger the biggest-ever peacetime repatriation of British citizens

Sky News learned that the 178-year-old travel agent has this week been holding emergency talks about a deal to offload its Nordic airline and tour operating units in a desperate bid to raise the additional funding.

Insiders said the company was examining "every possible option" as it tries to salvage a rescue deal with more than 20,000 jobs across the group at risk, including 9,000 in the UK.

Advertisement

On its official Thomas Cook Cares Twitter handle, the firm has been seeking to calm concerns raised by customers, insisting that all its holidays and flights were operating as normal.

It said it was working on plans to "provide financial stability" for the group.

More from Thomas Cook

Hi Samantha, the financial news is nothing to worry about. It's business as usual here and all our flights and holidays are going ahead as planned. ^Adam

— Thomas Cook Cares (@ThomasCookCares) September 19, 2019

In one post, the company said: "It's nothing to worry about, it's business as usual here and all our flights and flights are going ahead as planned."

If the company was to fail in the coming days, it would trigger an operation to fly home an estimated 180,000 Britons who are abroad on Thomas Cook holidays.

Several hundred thousand people from other European countries are also current customers of the group at scores of vacation destinations.

It would be the biggest-ever repatriation operation involving the customers of a British-based company, and in terms of UK citizens would be significantly larger than the 2017 collapse of Monarch Airlines.

There's no need to be worried, Nicole. We are working on recapitalisation plans to provide financial stability for the Thomas Cook Group going forward. The media speculation has no impact on our customers or the operations of our business to reassure you. ^Shelley

— Thomas Cook Cares (@ThomasCookCares) September 19, 2019

The Civil Aviation Authority (CAA) and Department for Transport (DfT) are being kept in close touch with the talks about Thomas Cook'Read More – Source

You might also like

Comments are closed.