Thomas Cook's third party insurer backs out

Thomas Cook saw its shares take yet another hit after it was revealed that credit insurance provider Euler Hermes withdrew its cover for the firm's third party suppliers.

The embattled travel company was backed into a corner after the news was reported elsewhere, prompting the company to release a report reassuring customers their bookings were safe.

In a statement Thomas Cook said: "This has zero impact on Thomas Cook customers. We confirm that no product has been removed from sale and no supplier has stopped trading with us.

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"We are a large group. This would affect only a very limited number of third party travel providers to Thomas Cook in the UK."

Companies such as Euler protect the third party firms which supply Thomas Cook products in the event the operator becomes bunkrupt.

Reports have suggested that holiday makers, third party providers and Thomas Cook's staff have all been highly concerned over the news, which caused the share price to drop around 1.5p in early trading.

Euler Hermes has so far refused to comment on the matter and is said to be seeking legal advice.

Thomas Cook has also been making the headlines after approaching one of the bigger French banks to discuss the sale of the business there. The company has refused to discuss the matter, but has said it is "advanced" talks with its lenders over the possibility of a £1.2bn deal to secure the future of the 170-year-old company.

The share price fell 2.15% to 22.75p by 12:23.

NR