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Thomas Cook in advanced talks for additional 150 million pound capital

Thomas Cook in advanced talks for additional 150 million pound capital
Published by
Reuters

1m read

12 August 7.50am

Hargreaves Lansdown is not responsible for this article's content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest. Article originally published by Reuters.

Travel company Thomas Cook Plc said on Monday it was in advanced talks with noteholders for a 150 million pound cash injection, which will add to the 750 million pound rescue it was negotiating with top shareholder Fosun Tourism <1992.HK>.

The extra cash will provide further liquidity through the coming 2019-20 winter cash low period, Thomas Cook said.

The Financial Times had first reported on the new capital injection on Friday.

In July, Fosun and Thomas Cook began negotiating a 750 million pound rescue that would give the Chinese conglomerate control of the indebted British group's package-tour business.

On Monday, Thomas Cook said it had made significant progress towards finalising the key terms of the recapitalisation with Fosun, lending banks and noteholders.

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The proposed recapitalisation would involve ownership restructuring of its tour operator and airline businesses, resulting in bank debt of about 650 million pounds and bond debt of about 1.15 billion euros being converted into equity.

Existing shareholders are likely to be "significantly" diluted as a part of this recapitalisation, Thomas Cook said, adding that it expects to implement the plan in early October.


Copyright (2019) Thomson Reuters. This article was from Reuters and was legally licensed through the NewsCred publisher network. Please direct all licensing questions to legal@newscred.com.

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Article originally published by Reuters. Hargreaves Lansdown is not responsible for its content or accuracy and may not share the author's views. News and research are not personal recommendations to deal. All investments can fall in value so you could get back less than you invest.

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