Thomas Cook Shares Take Dive
Shares in Thomas Cook Group have fallen 75% after it was announced the travel firm was in talks with banks about increasing the amount of money it can borrow.
Thomas Cook, an official sponsor of London 2012, has reassured customers that their bookings are fully protected – with the company still offering holiday packages to next year’s Olympic Games, which include private transfers to and from the venue, meals in London restaurants and Olympic tickets.
The troubled travel operator is now worth just £120m. Its shares have plunged 93% since the start of the year.
The firm has seen a deterioration of trading following problems in popular holiday destinations – including political unrest in Egypt and Tunisia and floods in Thailand.
According to media reports, Thomas Cook also revealed it would delay releasing its full year results until it had concluded the discussions.
Thomas Cook finance director Paul Hollingworth told The Telegraph that the group was looking to borrow around £100m to tide it over during December, when trading is traditionally quiet, and give it sufficient headroom to be in no danger of breaching banking covenants.
The loan is in addition to the £100m short-term credit line that Thomas Cook agreed with its banks following talks in October.
Thomas Cook Sport is the official travel partner of ten Barclays Premier League teams, including Manchester United, Manchester City, Liverpool, Arsenal, Chelsea and Tottenham Hotspur.
