Thomas Cook warns it could go bust if investors don’t back deal
TOUR operator Thomas Cook’s board has issued a dire warning to shareholders: support our cost cutting plans or send the firm into administration.
The company said in a circular that some of the debt lifelines it secured earlier this month will only become effective once investors approve plans to sell and lease back planes and dispose of other operations.
If shareholders revolt, Thomas Cook warned that its lenders could declare the firm in default, with no guarantee that a further rescue plan could be agreed.
Thomas Cook said it is required by lenders to secure plane sales worth at least £175m by 30 June.
The firm has agreed a conditional deal to sell 19 of its aircraft plus its Spanish hotels arm HCV for a total of £238.8m.
Shareholders will be asked to vote on the planned disposals at a meeting on 29 May.
The firm added that trading is tough, with its second-half results dependent on late bookings.