End of July after having welcomed two new shareholders, the tour operator requested an additional financial injection of £150 million (€161 million) from its shareholders. In the end, 900 million pounds are reinjected into the company under conditions that will have major impact on the group's business.
The conglomerate Fosun had been in discussions since July 12 with the tour operator to take a majority stake in its capital, in exchange for which it had to contribute an envelope of 750 million pounds, and Thomas Cook had announced that it needed additional funds to face the winter, usually a slow period for travel sales.
This recapitalization is being finalized, according to an announcement by the company on August 28. The funds announced were not sufficient according to the tour operator, which was asking its creditors for additional resources of £150 million (161 million euros) to compensate for the low season 2019/2020, a period "which usually brings in less revenue".
Ultimately, GBP 900 million will be invested as follows:
- £450 million by Fosun, which will now hold 75% of the tour-operating activity and 25% of the air activity
- £450 million by banks and other shareholders who will become owners of 75% of the airline business and 25% of the tour operator business.
The hotel business remains integrated into the tour operating business as the two business areas (TO/air) will now be two separate entities.
The transaction will be completed in early October 2019.
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. Thomas Cook is continuing its recapitalisation process and is thus refunding €1.6 billion of debt.
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