3rd May 2019 16:30
LONDON (Alliance News) - Thomas Cook Group PLC on Friday said it has maintained a "healthy level of liquidity headroom" over the winter months and kept its liquidity buffer on target.
On Thursday, the Financial Times reported "mounting concern" over Thomas Cook's capacity to service its debt after at least one lender sold its loan to Thomas Cook "at a highly distressed price", with a revolving credit line sold at approximately 59 pence on the pound "according to debt investors.
"Other trading levels seen by the Financial Times also showed that banks have been looking to sell this piece of debt to hedge funds at between 50 and 60 pence on the pound," the newspaper reported.
https://www.ft.com/content/d0a154ba-6d17-11e9-80c7-60ee53e6681d
The leisure travel group, responding to the discussions surrounding its financing requirements, said it had maintained its liquidity buffer within its targeted GBP150 million to GBP200 million range over the cash-low winter period.
Thomas Cook further stated that it has now entered its "key summer book period" and its liquidity position has strengthened. Moreover, the company is also in discussions with its lending banks to make sure it can "maintain an appropriate liquidity buffer" this coming winter as well as investing in growth.
Thomas Cook Chief Executive Peter Fankhauser said: "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."
The company will provide an update on its current trading when it publishes its interim results in on May 16.
Shares in Thomas Cook were down 1.0% at 21.89 pence on Friday afternoon.
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