Thomas Cook plunges 18pc as it seeks a £150m lifeline

THOMAS Cook is facing further questions over its financial health after it revealed it was asking lenders for an extra £150m on top of the £750m it has already called for.

The 178-year-old troubled travel operator said the additional cash, which will be provided by several of its bondholders in return for a stake in the group, was needed to ensure the business had enough money to keep operating through the winter.

But the announcement will alarm holidaymakers who are waiting to travel with Thomas Cook. It is also another blow for shareholders, including the individual investors who own around 20pc of Thomas Cook, as they face even further dilution of their stakes. Shares fell 18.3pc, or 1.76p, to 7.87p. It has debts of £1.2bn.

Neil Wilson, chief market analyst at Markets, said: ‘The cash crunch facing Thomas Cook ahead of the winter season is worse than feared.’

Thomas Cook is still hammering out a rescue plan with Chinese conglomerate Fosun, its largest shareholder. The deal, due to complete in October, will see Fosun and Thomas Cook’s major lending banks pile £750m of cash into the business to bring it back from the brink of collapse.

As well as putting up some of the new money, the banks have agreed to write off a ‘significant amount’ of the £650m they are owed by Thomas Cook, swapping the debt for yet more shares.

When Thomas Cook completes its restructuring at the end of the year, the group will split into two, with Fosun getting the lion’s share of the tour operator business.

Meanwhile, the banks, along with current Thomas Cook shareholders, will be left with a small chunk of the tour operator business, most of the airline and 566 High Street travel agents.