Thomas Cook Warns of Risk It Breached Its Own Borrowing Limits

Thomas Cook has told shareholders that it may have been regularly in breach of its own borrowing limits, marking the latest setback for the travel company which is restructuring in the face of shifting consumer habits, the Financial Times reported. The group said on Friday that the board had received external advice that its current interpretation of its financing limits may have led the company to “inadvertently” exceed the borrowing rules in its articles of association. The advisers raised the issue as part of Thomas Cook’s strategic review of its airline, which was announced in February as it struggles to contend with Brexit uncertainty and fewer customers visiting its high street travel agents. The announcement comes after the group issued two profit warnings and suffered a share price fall of 80 per cent over the past year. Shares were down just over 3 per cent on in late afternoon trading on Friday at 23.7p. Read more