Thomas Cook on the brink

Thomas Cook shares plunged by 75% after it announced that it was seeking an extra loan of £100m from its 17 banks – only a month after it last renegotiated its debt terms.

Thomas Cook, Europe's second-biggest tour operator, shocked the market this week. It announced that it was seeking an extra loan of £100m from its 17 banks only a month after it last renegotiated its debt terms. Cook said trading since September had been worse than expected and it needed to top up its cash for the slow winter months. The shares plunged by 75% on the news, which comes after three profit warnings earlier this year. The company's market capitalisation is now £89m; its debt pile is nearly £1bn.

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