Global tour operator Thomas Cook is in a race against time to secure further rescue funds, as the firm is facing falling into administration.
Britain’s oldest travel firm is looking to get a further £200m in funding in order to secure its future.
Thomas Cook’s banks, including RBS and Lloyds, have insisted that they come up with the new contingency funds in case it needs extra capital during the winter months.
Should the firm fall into administration, up to 180,000 holidaymakers could be stranded.
A statement from the company earlier today read: “Thomas Cook Group plc notes the recent media speculation regarding its proposed recapitalisation. Discussions to agree final terms on the recapitalisation and reorganisation of the Company are continuing between the Company and a range of stakeholders, including its largest shareholder, Fosun Tourism Group and its affiliates (“Fosun”), the Company’s core lending banks and a majority of the Company’s 2022 and 2023 senior noteholders.
“These discussions include a recent request for a seasonal standby facility of £200m, on top of the previously announced £900m injection of new capital. The recapitalisation is expected to result in existing shareholders’ interests being significantly diluted, with significant risk of no recovery. The Company will provide further updates in due course.”