Thomas Cook on brink after new cash demand

The high season for holidays is drawing to a close in Europe. And that spells trouble for ailing travel firm Thomas Cook. The historic company – a pioneer of the package tour – had thought a rescue deal was all sorted. Last month it agreed a 1.1 billion dollar recapitalisation plan with banks, bondholders and China’s Fosun Tourism. But now that may not be enough. Thomas Cook’s lenders want to see another 250 million dollars. That’s to tide it through the winter months, when cash flow slows. Shares in the firm fell by more than a quarter following the news, sinking to little more than three pence – about 4 U.S. cents. Thomas Cook has struggled with growing competition and high debts. In 2018 an exceptionally hot summer also hit last-minute bookings. Now it’s in talks to find the extra cash. Many holidaymakers will be anxiously awaiting news on its fate. About 600,000 people are currently on Thomas Cook trips.

(Visited 39 times, 1 visits today)

You might be interested in

LEAVE YOUR COMMENT

Your email address will not be published. Required fields are marked *