Thomas Cook Slumps as It Confirms Talks for Extra £150 Million

Thomas Cook, the UK tour operator, lost nearly a fifth of its market value after it confirmed it was seeking a further £150m on top of the £750m already secured as part of a rescue deal with its debtholders, the Financial Times reported. The Financial Times revealed on Friday that Thomas Cook was in talks with bondholders to secure the additional capital, as part of a bailout involving its largest shareholder, the Chinese conglomerate Fosun, and its lending banks. On Monday, it confirmed the talks in a stock market announcement and reiterated that the debt-for-equity swap would result in existing shareholders being “significantly diluted”. It added that the shareholders “may be given the opportunity to participate in the recapitalisation on terms to be agreed between, among others, the company, Fosun, and the converting financial creditors”. Read more