Image Source: Riik@mctr
Jane Imrie

Thomas Cook needs extra £200m to avoid collapse

Holiday operator Thomas Cook Group has confirmed that it needs an additional £200m to stay in business.

The troubled firm is once again in talks with its largest shareholder Club Med owner Fosun Tourism Group to negotiate a rescue deal.

These discussions now include a request for a seasonal standby facility of £200m, in addition to the previously announced £900m injection of new capital.

If the deal is unsuccessful, the company is likely to collapse, leaving 150,000 British holidaymakers stranded abroad.

Discussions have been ongoing since July, when the holiday firm initially requested a £750m rescue package from Fosun.

According to a statement from Thomas Cook: “The [deal] is expected to result in existing shareholders’ interests being significantly diluted, with significant risk of no recovery.”

A final vote on the rescue deal was set to take place this week, but has been delayed until next Friday as a result of the latest demand for extra funding.

Access free online guidance for North East businesses in the Growth Hub North East's COVID-19 toolkit →

Our Partners

Top Ten Most Read