Thomas Cook has reached a “substantial agreement” on a rescue deal with investors and lenders. Forsun will take a 75% stake in its tour operating business and have a 25% stake in its airline business. Forsun will also put in £450m for the business to help save the airline.
Lenders will put another £450m in and convert much of the company debt pile which is over £1bn into shares.
Thomas Cook has issued three profit warnings in a year and is struggling to reduce its debts. The company has also been trying to sell its airline business for a long time.
The £900m cash injection will take place by early October and will help the company avoid bankruptcy.
Thomas Cook said: “The execution of the transaction remains subject to a legally-binding agreement being reached amongst the parties to the recapitalisation plan and, where appropriate, the group’s other key stakeholders.”
In August 2018, 200 Thomas Cook shares were worth the equivalent of a week’s package holiday in Greece in the September month however now they are worth less than £13.
