Thomas Cook edges towards new banking terms
Struggling travel firm Thomas Cook has confirmed it is in talks with its bankers about extending its financing arrangements.
Struggling travel firm Thomas Cook has confirmed it is in talks with its bankers about extending its financing arrangements.
The statement comes after weekend press speculation it would conclude a £1.2bn refinancing deal.
The main problem for Thomas Cook has been a lack of customers taking package holidays to short haul destinations - the mainstay of its business.
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
With middle class British customers thin on the ground, the company issued a series of profit warnings through 2011, culminating in a nerve shredding announcement in November that it was in danger of breaching its banking covenants.
At that time the banks came through with £200m in emergency financing, and it now looks like a more permanent facility will be put in place.
The problem for shareholders, who have seen their holdings drop 86% in the last 12 months, is that the banks may demand a stake in Thomas Cook in exchange for the new overdraft.
It's also likely the company will pay higher interest rates than its sector peers as the banks extract a price for their mercy.
BS
Sign up for MoneyWeek's newsletters
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
-
8 of the best houses for sale with annexes
The best houses with annexes – from a period property in the Lake District to a 13th-century house with a two-bedroom annexe in Saltwood, Kent
By Natasha Langan Published
-
Zelenskyy moves to appease Donald Trump – what happens now?
Ukraine’s president Volodymyr Zelenskyy is conceding ground to secure the least-worst deal possible, says Emily Hohler
By Emily Hohler Published