Thomas Cook targets fresh capital injection to secure operations

UK-based leisure group Thomas Cook Group has announced it is arranging an additional GBP 150 million (USD 181m) in capital to continue operations until summer 2020, the company said.

The additional capital is on top of a GLP 750m financing package.

Cook said the substantial new capital investment is required to gain further liquidity headroom through the coming 2019-20 winter cash low period and to ensure the business can continue to invest in its strategy.

In July, Thomas Cook disclosed a recapitalisation plan with its largest shareholder, China-based Fosun Tourism Group, and a circle of lending banks, under which “a significant amount” of the leisure company´s GBP 650 million bank debt and GBP 1.15 billion bond debt is to be converted into equity.