20th Sep 2019 08:40
(Alliance News) - Thomas Cook PLC on Friday confirmed that it has requested an extra GBP200 million during discussions with core lenders and its largest shareholders Fosun Tourism Group.
Shares in the company tumbled by 17% early on Friday morning to 3.70 pence each, giving the venerable but troubled holiday firm at market capitalisation of just GBP56.8 million, a fraction of the cash injections it has recently required.
Thomas Cook issued the statement in response to media reports on Thursday which said the company would need to find an extra GBP200 million to secure its future.
Thomas Cook said the "seasonal standby facility" of GBP200 million will be in addition to the previously announced GBP900 million cash injection from Chinese firm Fosun.
Thomas Cook said: "Discussions to agree final terms on the recapitalisation and reorganisation of the company are continuing between the company and a range of stakeholders, including its largest shareholder, Fosun Tourism Group and its affiliates, the company's core lending banks and a majority of the company's 2022 and 2023 senior noteholders."
The firm added that the recapitalisation is expected to dilute interests of shareholders with "significant risk of no recovery".
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