Tour operator Thomas Cook is in big trouble. The group needs £ 200 million to avoid bankruptcy within a few days and thus avoid bankruptcy. Thomas Cook's financial difficulties are very worrying for the tour operator's Belgian clientele, which operates under the Neckermann brand
The troubled British tour operator Thomas Cook, also active in Belgium under the Neckermann brand, has started a race against the clock to quickly find additional funding to complete restructuring and avoiding a resounding bankruptcy … And a massive return of tourists. The group was forced to admit Friday in a brief statement that they need £ 200 million (+/- 226 million) more after recently published alarmist press reports on his health condition and the risk of a bankruptcy filing this weekend.
The addition to avoid this specialized turnkey trip to now fall to more than £ 1
These serious financial difficulties at Thomas Cook also worry the Belgian clientele of the tour operator, who had to answer further questions in recent days. Thomas Cook is also active in Belgium under the trademark Neckermann crumbling under debt. The information, reported by the press, reached the customers. The tour operator got more calls than usual. He recalls that consumers with concerns can get answers in the agency, go through the contact center or chat. More than 10,000 people are currently traveling under the responsibility of Thomas Cook Belgium. Since the company is affiliated with the sector guarantee fund, all customer services – or reimbursement, if any – are insured.
Restructuring for purpose
Thomas Cook tries to complete his restructuring plan after finding an agreement to transfer control of his tour operator business and part of its airline to Chinese Fosun. "Discussions on the final terms for recapitalization and reorganization of the group continue with many stakeholders, including its largest shareholder Fosun" as well as its banks and creditors, says Thomas Cook . But the tour operator warns that the talks "include a new request for a £ 200 million credit." This amount is in addition to the £ 900 million to be injected into the group as a result of the restructuring.
If the group is unable to obtain funds In addition, it can quickly go bankrupt, which could leave 150,000 British tourists with repatriation costs of £ 600 million for the authorities, according to the BBC. Thomas Cook also employs 22,000 people worldwide, including 9,000 in the UK. This would be the most spectacular return operation for the UK since the Monarch airline collapse in October 2017, when the government had organized a disaster for 110,000 passengers' return. Meanwhile, the British pilot union Balpa pointed to the banks' responsibilities RBS and LLoyds, which he said demanded additional funding of £ 200 million. "It is frightening that these banks that were saved by the taxpayer (during the 2008 crisis, ed) show no loyalty to a large British company, Thomas Cook, when it needs help " said Secretary General Brian Strutton. When asked about the group's precarious situation, the bank told RBS via a spokesman "continue to work with all parties to try and find a solution regarding the financing and liquidity needs of Thomas Cook ". The British Ministry of Transport has refused to " speculate on a company's financial situation."
The Depressed Stock Exchange
Thomas Cook hopes to be able to implement its restructuring plan which provides that Fosun, until now the main owner of the British tour operator with 17% of the capital and the owner of Club Med, will paying him 450 million pounds of fresh money, which allows him to acquire 75% of the central tour operator activity and 25% of its airlines. Creditors to Thomas Cook including his banks, pledge to contribute £ 450 million and convert their debts to buy 75% of the airline and 25% of tour operator activity. Thomas Cook whose net debt amounted to approximately £ 1.2 billion, hopes to complete the operation in early October but still needs to receive a series of green lights, including regulators. [19659003GroupSatisfactionContainingShareholdersCanGetBiggerLossesCapitalisationRecreasedRecoveredtoReducedThisPaymentImportantRecursedConstitutionalisedCollectedSecondSharePriceThomas Cooked at The 178-year-old tour operator is experiencing persistent financial difficulties due to competition from other tour operators and an uncertain economic environment, especially in the UK, where Brexit uncertainties keep tourists cautious.