Thomas Cook shares continue to plummet - 70% down UPDATE

Shares in travel firm Thomas Cook have continued their downward spiral after the firm said it was in talks with its banks about borrowing more money.

After an hour of trading the company's share price was down almost 70%.

Thomas Cook said it was going back to its banks because of a "deterioration of trading in some areas of the business in the current quarter".

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"The company is in discussions with its principal lending banks with regards to its facilities during the seasonal low period of cash in the business," Thomas Cook said.

"While the company currently remains in compliance with its financing covenants, it also intends to seek agreement from its lending banks to adjustments that will improve its resilience if trading conditions remain difficult."

It added that it would delay the release of its full year results, due out on Thursday, until the discussions were finished.

However, it did say it expected full-year operating profits to be in line with previous guidance.

In October, Thomas Cook said it had reached agreement with bankers to amend the terms of its existing facilities while securing an extra £100m of headroom.

Shares fell 51% on opening before rapidly heading lower and hit 70% after an hour of trading.

Before today the stock had dropped 78% already this year, with the firm issuing three profit warnings.

City analysts said the fact Thomas Cook was already already looking to amend its lending terms so soon after the agreement meant either the firm had drastically underestimated their fiscal requirements in October's negotiations or trading conditions have deteriorated significantly since then.

"Today's 51% loss in the firms share price may seen harsh at the outset but for some investors and considering the tough times they have faced, it is entirely justified," said Joshua Raymond, chief market strategist at City Index, when markets opened.

"And what's more, the last thing shareholders will want to see right now is a lack of transparency over the firms performance and so the delay in publishing their full year numbers will only feed fears and rumours of the firms potential demise."

Thomas Cook has been hit hard by the economic downturn as well as unrest in and around popular Middle Eastern holiday destinations.

In May, it announced losses of £22m after cancelling 160,000 holidays to Egypt and Tunisia due to political unrest.