Struggling Travel Agent Thomas Cook said it has agreed a new 200 million pounds facility with its Lenders; Barclays Plc, HSBC Holding Plc, Royal Bank of Scotland Group Plc and UniCredit SpA, until April 2013, the new facility
replaces the 100 million pounds short-term facility announced in October, easing fears about the future of the world’s oldest travel company, whose shares plummeted 75% earlier this week when it asked banks for new funding.
The 170-year-old company said their lenders have also agreed to relax the terms of an upcoming key test of its financial health.
“This provides the group with much increased headroom to deal with unexpected events and the effects of an uncertain economic environment,” the company said in a statement.
Thomas Cook has been hit for six by tough trading conditions Globally and Nationally, in the UK, its core customer base consists of families with young children who have been particularly affected by tough economic conditions. It was also hit by unrest in popular destinations such as Egypt, Tunisia and Morocco.
Thomas Cook shares, have lost 94% of their value since the start of the year, and fell 75% on Tuesday when it asked lenders to come to its rescue for the second time in five weeks. The stock closed 10% higher at 18.02 pence yesterday. The markets await the opening bell come Monday when trading in the stock is expected to be brisk! Looks like the wolf has been beaten back for the time being. “I am absolutely delighted that we have reached agreement and I would like to thank the banks for acting so swiftly,” Acting Chief Executive Sam Weihagen said in a statement
Reporting by Dan.
Those who owe the most money get the best protection! That is how the system works. Completely self serving at the detriment of the poor. It matters not who picks up the tab, as long as I am OK Jack!
Here is a task –
I bet you cannot get hold of the precise figure of all the companies in the UK that pay a percentage of every transaction to the Banks. And what is the total contribution? I doubt you would be able to publish such numbers as they are kept out of the public domain.
Well said. Most of these transactions are wrapped up and moved around offshore/onshore to negate tax liabilities. Trying to track and trace them is nigh impossible for the taxman the cost of investigation is prohibitive. The city and the banks are completely immoral.
Dan
The criteria for the small business loans are absurd.
The proposal is to give needy companies more capital for expenditure. It is just a clever way of propping up the Banks even further, as the lending will be given to those with the biggest DEBTS.
So yet again the Banking industry wins hands down.
Why are we not lending more directly to success stories or those without zero debt? I would much rather see tax payers money applied
to responsible organistations. Channeling more money through the Banks is a bit like giving Cocaine to Columbia to sort out the drugs
trade!
Let’s start rewarding companies that turn 50p into £1.00 and not those that absorb £1.50 to make £1.00.