Thomas Cook looks to reassure customers as it emerges it could go bust
Travel firm Thomas Cook, which has a branch in the Isaac Newton Centre in Grantham, is working to reassure customers, staff and shareholders today, as news emerged that the business could go bust.
It was reported this morning that Thomas Cook could be on the brink of collapse if a rescue deal is not found quickly.
Reports claim that the 178-year-old travel firm is facing a £200 million black hole.
Today, Thomas Cook, which has its Spalding branch in the Market Place, said on its website: "We are working on recapitalisation plans to provide financial stability for the Thomas Cook Group going forward."
For people worried about booking through the company, it said: "We understand you might be unsettled by all the media speculation surrounding Thomas Cook.
"The plans we have announced, and the process we continue to work through, will, when executed, provide even greater certainty for Thomas Cook’s future.
"Additionally, all our package holidays continue to be fully ATOL-protected."
ATOL (which stands for Air Travel Organiser’s Licence) is a UK financial protection scheme and it protects most air package holidays sold by travel businesses that are based in the UK.
In a statement released to the media today, Thomas Cook said: "Thomas Cook Group plc ("the Company") notes the recent media speculation regarding its proposed recapitalisation.
"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 (“Fosun”), the Company’s core lending banks and a majority of the Company’s 2022 and 2023 senior noteholders.
"These discussions include a recent request for a seasonal standby facility of £200 million, on top of the previously announced £900 million injection of new capital.
"The recapitalisation is expected to result in existing shareholders’ interests being significantly diluted, with significant risk of no recovery."
"The Company will provide further updates in due course."
More by this authorGraham Newton