Panel to Rule On Credit Dispute Key to Thomas Cook's Future

A panel of bankers will rule on Thursday whether some investors in Thomas Cook’s credit are due a payout under bankruptcy rules, a decision that could smooth a rescue of the world’s oldest travel company, Reuters reported. The British firm, which employs 21,000 people across 16 countries, agreed the key terms of a rescue deal with Chinese shareholder Fosun (1992.HK) last month. But it must be approved by creditors next week. Holders of Credit Default Swaps (CDS), instruments used to insure exposure to credit, are digging in for a payout for their bets against the company. Following Thomas Cook’s filing for Chapter 15 bankruptcy protection in the United States, Credit Derivatives Determinations Committees (DCs) have been asked to adjudge: “Has a Bankruptcy Credit Event occurred with respect to Thomas Cook Group PLC?” Read more