Thomas Cook Rescue to Be Challenged

Holders of credit insurance on Thomas Cook Group Plc are drawing up plans to potentially block the U.K. travel agent’s $1.1 billion rescue in order to ensure they get a payout, Bloomberg News reported. The group of hedge funds, including Sona Asset Management and XAIA Investment GmbH, may vote against a bailout led by Fosun Tourism Group at a creditor meeting on Sept. 18 if they don’t secure their payment before then, according to people familiar with the plan. Fosun’s rescue includes a debt-for-equity swap that could prevent compensation on their default insurance. The hedge funds are drawing up the plans because they fear the conversion into equity swap that’s central to the restructuring may leave their holdings of credit-default-swaps with no debt to insure. Read more