Thomas Cook sells Spanish chain for €72m
Struggling travel firm Thomas Cook has sold Hotels Y Clubs De Vacaciones (HCV) to Grupo Iberostar for €72.2m.
Struggling travel firm Thomas Cook has sold Hotels Y Clubs De Vacaciones (HCV) to Grupo Iberostar for €72.2m.
HCV is a holding company that, together with another shareholder, owns five Spanish hotels and one golf club as well as operating a second golf club in Spain.
It is being sold with net debt of €22.4m, meaning the transaction will reduce Thomas Cook's net debt by €94.6m (£81m).
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
![https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748-320-80.jpg)
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
The sale of HCV is part of Thomas Cook's disposal programme announced earlier this year, which aims to clear out £200 million of non-core assets over a six to eighteen month period.
Thomas Cook recently struck a deal with its banks giving it a £200m life line.
In late November the firm's banks, which are led by Barclays, HSBC, RBS and UniCredit, agreed to provide the new facility available until 30 April 2013, which replaces the £100m short-term facility announced on 21 October 2011.
They also 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.
A toxic mixture of economic crisis and political unrest in the Middle East and Africa has hit the firm hard, with its share price tumbling over 90% in the last year.
Thomas Cook's shares rose 2.5% following the announcement.
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
-
Regulator moves to protect access to cash amid branch closures and disappearing ATMs
News The Financial Conduct Authority has told banks to start assessing if local communities have adequate cash access from mid-September
By Marc Shoffman Published
-
VAT hike on private school fees could come earlier than previously expected
The government could start charging VAT on private school fees as soon as January 2025, according to the latest reports. What does it mean for parents?
By Katie Williams Published