Thomas Cook lifted by talk of £1.2bn deal

Kasmira Jefford
Follow Kasmira
SHARES in Thomas Cook closed 13 per cent higher yesterday after the debt-laden tour operator confirmed it is close to securing a £1.2bn refinancing deal with its lenders.

The world’s oldest travel firm, which came close to collapse at the end of last year, said it is in “advanced discussions” with its banks over extending loans to 2015.

It expects to have an agreement in time for its half-year results in May, when Thomas Cook will also reveal the outcome of its strategic review.

The deal, which comes just months after it lenders injected £200m into the business, will give the travel group more time to revive lagging sales.

Analysts said shareholders will be pleased that the group has the support of its lenders, despite the hefty interest charges it is likely to pay.