Thomas Cook seals new deal with banks

Struggling tour operator Thomas Cook has been boosted by a new deal with its banks.

The company had lost three quarters of its market value since January and had scrapped its dividend to shareholders.

Short-term credit lines of £100m have been agreed to help it survive December, traditionally a poor month for the industry.

It also agreed a renegotiation of an existing £150m loan and a £850m credit facility.

A ban on dividends was part of the new deal, and some analysts warn that it may yet have to ask shareholders for more cash.

But others were more hopeful.

"It's a positive development which addresses a widely-held investor concern," according to Charles Stanley analyst Douglas McNeill.

The company unexpectedly announced the departure of its chief executive in August, and has yet to announce a successor.

The company has been looking outside the industry for Manny Fontenla-Novoa’s replacement, and analysts expect a selection to boost share prices further.