Thomas Cook sells Spanish chain for £61m

Thomas Cook said it had sold its Spanish hotel chain Hotels Y Clubs De Vacaciones (ICV) to Grupo Iberostar for 72.2 million euros (£61m) as part of its plans to cut debt.

HCV is being sold with net debt of 22.4m euros so the transaction will reduce Thomas Cook's net debt by 94.6m euros.

"We have been able to agree this transaction which will significantly reduce Thomas Cook's net debt and demonstrate our ongoing commitment to strengthen the balance sheet," Chief Executive Sam Weihagen on Tuesday.

The world's oldest travel firm is facing an uphill task to restore the confidence of holidaymakers and investors.

The company's total outstanding debt currently stands at as much as £2.1bn.