Offer of rescue rejected

THE asset management business founded by Conservative Party donor Sir Michael Hintze was willing to stump up enough money to secure Thomas Cook’s rescue, the Mail understands.

CQS, which focuses on lending to companies, made an offer to plug the £200m gap which the travel operator found in its rescue deal. However, a source close to the bust travel agent described the offer from CQS as being so ‘astronomically expensive’ that none of the other parties in the bailout were willing to agree to it.

Thomas Cook tumbled into liquidation in the early hours of Monday morning, after failing to hammer out a rescue deal with its lenders – including Royal Bank of Scotland (RBS) and Lloyds Bank – investors which held its bonds and Chinese conglomerate Fosun. A blame game has broken out between several of the parties, with each denouncing the other for failing to secure the deal.

Thomas Cook had initially agreed the outline of a rescue deal late in August, which would have seen £900m injected by Fosun, the lenders and the bondholders.

But advisers working with the lending banks had submitted a report earlier in August stating that Thomas Cook would likely need yet another £200m to see it through winter’s slower trading period.

Despite protracted talks, no one was willing to plough in more cash.

After eleventh hour talks over the weekend, and failing to drum up support among any new City investors, the historic travel agent entered compulsory liquidation.