Mall of America Shot 2019-05-20 at 10_22_43.png

Published on Wednesday, August 28, 2019

Thomas Cook agrees rescue deal

Thomas Cook has confirmed the key terms of a rescue deal with Chinese investor Fosun, its banks and major bondholders.

The company will sell the majority of its tour operation and a stake in its airline to Fosun, which is currently its major shareholder.

The agreement, expected to be concluded on October 1, sees Fosun take control of the business, by injecting £450 million, in exchange for at least 75% of equity in Thomas Cook's tour op and up to 25% in the airline.

Core lending banks and bondholders will put in the same amount of money for the opposite parts of the business: contributing a further £450m for 75% of the airline and up to 25% of the tour operator business

But the plan, which is subject to approvals and conditions, will result in a significant dilution in existing shareholders' interests, Thomas Cook said. It added it had decided the rescue deal was the best way to secure the future of the group for all its stakeholders.

In a statement, Thomas Cook said:  "In its announcement of 12 July 2019, Thomas Cook stated that shareholders may be given the opportunity to participate in the recapitalisation by way of investment alongside Fosun and converting senior creditors on terms to be agreed.

"The Board continues to proceed on the basis that a recapitalisation, achieved with the support of shareholders, is the preferred means of securing the future of the Group for all its stakeholders (including customers, suppliers and employees), while at the same time enabling the existing shareholders to continue to retain an investment in the Company.

"However, the recapitalisation is expected to result in existing shareholders' interests in the recapitalised and reorganised Group Airline being significantly diluted, subject to feedback from creditors, the new money providers and other stakeholders."

Fosun, which also owns Club Med had been in talks with Thomas Cook since July.

Story Image

Your Comments

, be the first to post a comment.
Your email:

Email other comments made to this story

NOTE: Comments are subject to admin approval before being posted.
Mole Poll
'Ryanair UK pilots offer to call of strike' - Who is your sympathy with ?
Pilots 50.78 %
Ryan Air 49.22 %

Thank you for your vote


Mayflower 400 ... the big event for the
UK 2019/20... experts talk about how to sell it

TravelMole talks to Missing People Charity

Tom Garzilli CMO [email protected]
talks to Graham McKenzie about
Travel Week in London and future plans

Designate talks Brexit,
HumanKind and Brighton

Move scroll bar (above) left to right for more videos!