Thomas Cook seeks further £150m

Troubled travel company Thomas Cook is in advanced talks to raise £150 million from bondholders after making “progress” over the terms of a rescue deal.

The tour operator is looking to secure the cash injection on top of a £750m deal it has already agreed with Chinese firm Fosun to attempt to secure the future of the company.

Thomas Cook has suffered recently as a result of mounting debts, reporting a £1.2 billion net debt in its half-year results in May.

It has also been hit hard by an influx of online competitors which has resulted in oversupply, forcing tour operators to cut prices.

Last month, Thomas Cook announced that majority shareholder Fosun would recapitalise the company, with additional funding from its lending banks.

The travel firm said the additional cash boost would ensure further liquidity headroom for the difficult winter period.

In a statement to investors, the company said: “The discussions with noteholders include the injection of additional capital on top of the previously announced £750m.

“This additional capital, of approximately £150m, will provide further liquidity headroom through the coming 2019-20 winter cash low-period and ensure the business can continue to invest in its strategy.”

Thomas Cook said its original £750m funding deal – which included £450m from Fosun, with the rest from lenders – would give the company sufficient liquidity to cover its costs this the year.

Thomas Cook shares closed down 1.76p at 7.87p.

Thomas Cook shares nosedived yesterday.