Thomas Cook may get £100m backing from banks

Potless package tour operator Thomas Cook is reportedly close to getting another dollop of cash to tide it over the bleak mid-winter period.

According to the London Evening Standard, the troubled FTSE 250 firm will survive though the Christmas period thanks to the support of its banks, which are set to make up to £100m available to the firm in the coming days to keep it afloat and alleviate its cash-flow problems.

The news saw the firm's share price gain 17.49% to 19.21p by 13:37. It has lost 90% on its share price over the past year, equiavlent to 171.29p.

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Numis Securities has said: "We believe that Thomas Cook will continue to trade (albeit possibly in a much reduced state) but it is already apparent that damage is being done to its brand reputation. This is a major concern given the extensive use of the Thomas Cook brand name on the high street."

Market competitor TUI Travel also saw its shares rise on the reports.

NR