Thomas Cook badly in need of money

great difficulties, the tour british operator Thomas Cook is in discussions advanced with its creditors in order to raise 150 million pounds necessary for its s

Thomas Cook badly in need of money

great difficulties, the tour british operator Thomas Cook is in discussions advanced with its creditors in order to raise 150 million pounds necessary for its survival. This contribution of money would be in addition to 750 million expected in early October in the framework of its takeover by the chinese Fosun, which owns Club Med, and largest shareholder of Thomas Cook, with nearly 18 % of the capital. The group should thus be able to face the next winter season, traditionally the lowest of the year, and "continue to invest in (its) strategy", says the british tour operator.

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in Mid-July, however, Thomas Cook explained that the $ 750 million paid by Fosun would be enough to put back on its feet, in exchange for taking control of the tour operator and of a minority stake in its airline, home. On the London stock Exchange, the share lost more than 20 % Monday after-noon. In loss of speed in the last 18 months, the title has been removed from the FTSE-250 average values listed in London at the end of 2018.

The recapitalisation of Thomas Cook will allow creditors to recover their loans in the form of shares. The company is heavily in debt, both from banks (650 million pounds) on the bond market (1.15 billion pounds).

Created 178 years ago, the oldest tour operator in the world suffers from a decreasing demand for its holiday packages and a high level of debt. In addition to the economic uncertainty caused by the Brexit, it has been losing market share in the face of the tour operators online. In 2011, penalized by the arab spring, Thomas Cook had inspired fears of a possible bankruptcy. Already heavily indebted, he had found in extremis an agreement with its banks and took drastic measures (headcount reductions, closures of travel agencies). In losses, he has achieved last year a turnover of 9.6 billion pounds. Employing a 21,000 employees, the group is now traveling 22 million customers and boasts 200 hotels and resorts.

Date Of Update: 15 August 2019, 00:00
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