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Thomas Cook stocks up before winter

While the tour operator has recently welcomed two new shareholders, it is requesting a possible additional financial injection of £150 million (€161 million) from its shareholders.

While the Chinese conglomerate Fosun has been in ngotiations since July 12 with the tour operator to acquire a majority share in its capital, in exchange for which it should offer a 750 million pound enveloppe, Thomas Cook has announced it needs additional funds to face the winter season, a period that is usually slow for travel sales.

This recapitalization is currently being finalized, according to an announcement by the company. Cash payments are expected to be made in early October 2019. But these funds would clearly not be sufficient according to the tour operator, which is asking its creditors for additional resources of £150 million (161 million euros) to compensate for the typically slow winter 2019/2020 season, a period "which usually brings in less revenue".

Thomas Cook has been facing significant financial difficulties since the end of 2018, including both an external bank debt of £650 million and a bond debt of £1.15 billion. To deal with this crisis, the British operator decided to convert its debts into equity. For example, the Chinese conglomerate Fosun, owner of Club Med, and the Turkish investor Neset Kockar, acquired 18% and 8% of the company's shares respectively. This should lead to a majority takeover of the tour-operating activity by the Chinese conglomerate, which would thus strengthen the tourism sector in Europe, and of a minority share in the aviation activity.

 

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