Finance

Travel Agency Thomas Cook in Advanced Talks Over £150 Million Capital Injection

Thomas Cook used to be one of the biggest travel companies in the world, but over the past few years, the company has fallen on hard times. Over the past few quarters, the travel company has struggled with capital issues, and that had completely pummelled the stock as well. However, it seems that the company seems to have turned a corner, considering the new developments that have come to the fore with regards to a capital raise. It has now emerged that the company is now in the final stages of negotiations with noteholders in Thomas Cook over a capital injection of £150 million. The company announced that it is in advanced talks with regards to the capital raise.

However, that is not all. Thomas Cook is also negotiating a rescue plan with its biggest shareholder, Fosun Tourism, over a package of £750 million. If both these capital raise negotiations prove to be a success, then the company will have a considerable war chest that will allow them to navigate this period of chaos. As everyone knows, the winter months are usually a slow period for most travel companies, and according to the statement released by the company, the money will be used to tide over the period. The news had first been reported on Friday by a leading financial daily, and now it has been confirmed by Thomas Cook as well. It would be interesting to see the impact that this news has on the company’s stock.

The £150 million capital raise is definitely going to be a breath of fresh air for Thomas Cook, but it goes without saying that the more important deal is the one the company is negotiating with Fosun Tourism. A capital injection of £750 million is definitely going to be a huge deal for the company and one that could see it turning itself around in the long run. At the end of the day, the level of competition has seen Thomas Cook struggling to make a mark in the world of travel, and this could help the company in opening a new chapter.

Tags

Jodie Miller

Jodie Miller is experienced journalist. She holds double degree in journalism and communication. She joined our team as a content curator. She enjoys writing and curating contents related to finance and forex world.
Event Information
Event Information
Back to top button