Thomas Cook extends loan agreements
Thomas Cook has managed to extend the expiry date for its banking arrangements by one year to May 2014.
This comprises a £200 million term loan and an £850 million revolving credit facility.
In addition, the interest margin on the facilities has been reduced with immediate effect.
Chief financial officer Paul Hollingworth said: “As stated in our recent trading update, we continue to perform well on cash flow, with circa £900 million of available cash and committed facilities.
“We are focussed on reducing our debt and strengthening our balance sheet and we have a number of initiatives underway to deliver progress on this including the disposal of certain hotel and surplus assets.”
The operator issued a profit warning last week and announced that it had started a “fundamental review” of its business.
Thomas Cook’s share price plunged 28% after it told the City that its full-year profits would be £60 million lower than expected.
It blamed the squeeze on consumer spending and political upheaval in the Middle East and North Africa.
The operator said the review would focus exclusively on its product mix, although it did not rule out job cuts.
Further details will be announced at the company’s third quarter trading update in August, although the spokeswoman said the review was likely to continue beyond the summer.
The company is also waiting for news from the Competition Commission about its proposed merger with The Co-operative Travel and Midlands Co-operative.
Initial findings from the Commission’s inquiry are expected to be announced within days.
by Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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