Shares in troubled tour-operator Thomas Cook shot up on Monday morning in reaction news issued late on Friday that the cash-strapped firm has reached an agreement with its bankers to provide the company with a new lending facility.
Shares were nearly 50^ in the first half-hour of trading to 27p.
The firm's banks, which are led by Barclays, HSBC, RBS and UniCredit, have agreed to provide a new £200m facility available until 30 April 2013, which replaces the £100m short-term facility announced on 21 October 2011.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
In addition, they have agreed a further relaxation of the financial agreements under the existing facilities, giving the group increased headroom to deal with unexpected events and the effects of an uncertain economic environment.
The group is set to undertake a strategic review to enable it to reduce the group's debt and reach a more appropriate capital structure over time.
The group will announce its preliminary results for the twelve months ended September 30th, 2011 during the week commencing December 12th, 2011. The figures had been due for release on November 24th but were yanked as a result of the need to secure the future of the company.
NR
-
Ticket scam warning ahead of major summer eventsA total of £6.7 million was lost to ticket scams last year. With the Taylor Swift Eras tour and Glastonbury Festival coming up, we explain how to stay safe when buying tickets
-
GDP: UK economy exits recessionThe latest GDP figures reveal the UK economy grew by 0.6% in the first three months of the year, officially exiting recession. We look at what households and investors can expect next.
