Thomas Cook Airlines Has Been Continuously Talking With Its Major Share Holder 'Fosun Tourism Group' As Well As Banks For Major Re-capitalisation Of €750 Million. The Recapitalisation Would Lead To Restructuring Of The Ownership Of The Tour Company & Airline Both.
The 'Fosun' Would Hold A Major Controlling Stake In The Tour Company and Minority Interest In The Airline. All The Banks Bond Would Be Converted Into A Equity Under The Proposition.
Thomas Cook Had Recently Carried Out A Strategic Review Of The Airline And Disclosed And Said That It Had Received Approaches For The Tour Business.
Recapitalization would replace a £300 million funding facility agreed in May, but the proposal remains subject to several conditions including due diligence, agreements with stakeholders, and performance criteria, as well as regulatory approval.
Thomas Cook Chief Executive Peter Fankhauser said:
While this is not the outcome any of us wanted for our shareholders this proposal is a pragmatic and responsible solution which provides the means to secure the future of the Thomas Cook business for our customers, our suppliers and our employees. This has impacted the group's underlying financial position and its ability to execute a disposal of the airline or the tour operator, either in whole or parts, in a way which returns satisfactory value to the group and its stakeholders.A Report By Thomas Cook Said:
The group's core lending banks are supportive of a recapitalisation and are engaged in constructive discussions with the group to agree terms. The proposed recapitalisation will not impact trade creditors.
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