Drive American Shot 2019-09-17 at 15_04_23.png

Published on Tuesday, September 17, 2019

Thomas Cook files for Chapter 15 bankruptcy protection

Thomas Cook Group has filed for Chapter 15 court protection in the US, the next step in its rescue deal plans.

The filing protects Thomas Cook from legal action from US creditors while it goes through a reorganisation.

It also triggers the payout of default insurance for bondholders who may block the deal.

Thomas Cook needs to secure support from 75% of its bondholders for the rescue deal to be approved, but, according to reports first circulated in the FT, some hedge funds are set to vote against the recapitalisation, which would see existing shareholders' interests significantly diluted.

Disgruntled bondholders are pushing for the deal to be restructured to allow credit default swaps (CDS) on their loans, which act as an insurance that pays out if the bonds become worthless.

Thomas Cook has postponed this week's scheduled creditors' vote on its planned takeover by Fosun until September 27 to give it more time to secure a deal.

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
'WTM London abandons plans for live 2020 event' - Will Covid prove the end for WTM ?
No 47.62 %
Yes 52.38 %

Thank you for your vote

What is GoodtoGo?

Submit your news
or special offer

Current UK Special Edition

Current US Special Edition

Current Asia/Pacific Special Edition


Air Transat are 'over ready' for take off as long as the governments act fast

Craig and Andy of Flexireps explain the range of services they offer and to whom

Visit Brighton launch new 'Never Normal' campaign and look to a post Covid world

PATA UK Chapter Chairman talks about 2021 as the start of the come back for the region