Why is Thomas Cook Travel still in danger ?
Thomas Cook needs money faster than expected. Negotiations between shareholders, including Fosun of China and some hedge funds, take time. Some are preparing for the worst.
Thomas Cook has a need for liquidity
Faced with this still delicate situation, the company is in talks to obtain additional financing estimated at €100 million. Thomas Cook points out that any delay would imply insolvency proceedings: « The serious liquidity problems within the group lead to an urgent need to complete the restructuring in September « .
Hedge funds could cause the transaction to fail
The hedge fund group (Sona Asset Management and XAIA Investment GmbH), could vote against the rescue plan led by Fosun Tourism at a creditors’ meeting tomorrow 18 September, if they do not secure their payment.
Fosun’s rescue includes a debt-to-equity swap that could prevent compensation for their obligations in the event of default.
The British Civil Aviation Authority warns
The British aviation policeman is preparing for a possible collapse of Thomas Cook’s rescue agreement with China’s Fosun.
The Civil Aviation Authority is reportedly preparing a plan that could include the repatriation of thousands of customers if the century-old travel company goes bankrupt during their holidays.