THOMAS Cook is seemingly headed for a financial overhaul after one of the banks with which it is engaged in ongoing discussions indicated it was keen for an expedited resolution of the tour operator’s debt crisis, according to a report in The Financial Times.
The UK-based travel firm’s share price nosedived 75.2 per cent to close at 10.2 pence (US$0.16) on London’s FTSE 250 shares index on Tuesday, after the company announced it was seeking a new £100 million loan from a conglomerate of 17 banks, just a month after the same group had extended it a £100 million lifeline.
The share plunge left Thomas Cook valued at just £89.25 million.
“As a result of deterioration of trading in some areas of the business in the current quarter, and of its cash and liquidity position since year-end, the company is in discussions with its principal lending banks with regard to its facilities during the seasonal low period of cash in the business,” Thomas Cook said in a statement.
The travel firm added that it would have to delay the release of its full-year results, which were originally due to be published today, pending the conclusion of the bank discussions.
Europe’s second-largest travel company after TUI Travel has suffered a calamitous year, with one setback after the next leading to the resignation of its CEO Manny Fontenla-Novoa in August (TTG Asia e-Daily, August 3).
Meanwhile, according to a report in UK’s The Sunday Times, Thomas Cook is planning to close about 200 of its travel outlets and reduce its aircraft fleet by six planes.
