Thomas Cook ditches dividend payments

City A.M. Reporter
Thomas Cook expects to reach an agreement with its lending banks by the end of October to relax the criteria for a key test of its financial health due in December, finance director Paul Hollingworth said.

"I think we should have an agreement by the end of October. If things are getting tighter what we should do is build back that confidence. We're in very constructive talks with the banks," Hollingworth said.

Hollingworth also said he did not expect the company to reinstate dividends in the short time.

"We won't resume dividends until we've re-built the balance sheet," he said.

Hollingworth said he didn't expect the company to appoint a permanent chief executive before next year. He also said he could not rule out a rights issue as one way of bolstering its finances.