Thomas Cook Travel company is fighting Death: 200 Million Needed. The British travel company Thomas Cook is in even more significant problems than it already did.
The company needs another 200 million pounds to survive the winter.
Earlier this year, 900 million pounds were already pumped into the ailing company by creditors,
bondholders and Chinese major shareholder Fosun.
Thomas Cook, the parent company of Neckermann, has been running poorly for a long time.
In the first half of 2019, a loss of 1.5 billion pounds was even recorded.
Debt for shares
So it’s time for action. A rescue plan was agreed with which the company must raise 900 million pounds.
Half of that would come from the Chinese Fosun,
which in return demands 75 percent from the tour operator branch and 25 percent from the airline.
Thomas Cook wants to raise the other 450 million from banks and bondholders,
who convert Thomas Cook’s debt into shares.
They then receive 75 percent from the airline and 25 percent from the tour operator.
But that plan is therefore in question.
Moneylenders want Thomas Cook to get another 200 million pounds,
away to have more certainty that the company will survive the winter period.
But where that money comes from is not clear.
If that money does not come, the whole deal can blow,
which would most likely mean the death sentence for the company.
The deal is dramatic for existing shareholders.
With the injection of 900 million pounds and the new shares in return,
the existing shares have almost become worthless.
Thomas Cook admits that there is a ‘significant risk’ that they will never see their money again.
200 jobs in the Netherlands
Thomas Cook Netherlands and Neckermann Reizen have about 200 jobs at risk due to the impending bankruptcy.
How many travellers are currently travelling with the organisation or have planned bookings does not mean a spokesperson.