British travel company Thomas Cook have entered into £750m rescue deal talks with several banks, as well as its largest shareholder, Chinese investment giant Fosun.
Thomas Cook Group announced that it is in advanced discussions with Fosun and its affiliates to make a substantial new capital investment as part of a proposed recapitalisation and separation of the group.
Under the proposal, the group is targeting an injection of £750m of new money which would provide sufficient liquidity to trade over the Winter 2019/20 season and the financial flexibility to invest in the business for the future.
The group has also engaged in constructive discussions with bonding providers, and other critical financing partners to enable it to operate its business as usual through to the completion of the recapitalisation.
Peter Fankhauser, Chief Executive of Thomas Cook commented: “After evaluating a broad range of options to reduce our debt and to put our finances onto a more sustainable footing, the Board has decided to move forward with a plan to recapitalise the business, supported by a substantial injection of new money from our long-standing shareholder, Fosun, and our core lending banks.
“While this is not the outcome any of us wanted for our shareholders, this proposal is a pragmatic and responsible solution which provides the means to secure the future of the Thomas Cook business for our customers, our suppliers and our employees.”