Thomas Cook in talks to secure new loans
Thomas Cook has admitted it is in negotiations with its lenders about bolstering its finances after recent media speculation regarding the ability of the travel company to pay its debts.
In February, Thomas Cook announced it was seeking buyers for its profitable airline business and it has reportedly asked for expressions of interest by today.
In a statement released on Friday, the company said: "Thomas Cook Group plc notes the recent media speculation regarding discussions in relation to its financing requirements.
"As stated in our first quarter trading announcement of 7 February 2019, Thomas Cook kept a healthy level of liquidity headroom through the last winter cash low period, maintaining a minimum liquidity buffer within our targeted range of £150 million to £200 million.
"Since that update, the business has moved into its key summer booking period where the Group’s liquidity position continues to strengthen.
"Looking ahead to Winter 2019/20, we have taken the proactive step of engaging in discussions with our lending banks now to ensure we have both the financial flexibility necessary to maintain an appropriate liquidity buffer through the winter, and also the ability to continue to invest in our strategy of growth."
Chief executive Peter Fankhauser added: "We have taken a number of prudent early steps to de-risk our business by taking out capacity in a challenging consumer environment. We have also taken the proactive step to approach our financing partners and are engaged in constructive discussions to ensure we have the flexibility and resources to continue investing behind our plans over the long-term."
Thomas Cook said it would provide an update on current trading on the publication of its first half results on May 16.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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