Thomas Cook shares take off on £200 million rescue deal

Shares in travel firm Thomas Cook were 23% higher in afternoon trading on news of £200 million of new financing for the firm.Thomas Cook shares take off on £200 million rescue dealAt the weekend the firm reached agreement with its lenders to provide it with new access to funding.

Shares in the company initially fell 75% last week after it said it was in talks about increasing borrowings.

Thomas Cook has blamed unrest in Egypt and Tunisia and floods in Thailand, all key destinations, for hitting sales.

Its lenders, including Barclays, HSBC, RBS and UniCredit, agreed to provide a new £200 million facility until 30 April 2013.

The new deal replaces the £100 million short-term credit agreement announced on 21 October.

At the end of September, the firm’s net debt was just under £900 million. The new loan will take the figure to over £1 billion.

Thomas Cook has said it will issue its preliminary financial results, for the 12 months to 30 September, during the week beginning 12 December.

These had been delayed until the loan talks concluded.

Thomas Cook has reassured customers that their bookings are protected.

November 30, 2011  Tags: , , , , , ,   Posted in: Business Jobs, Business Services, Business Survival, Business Win, Flying Businesses, Global Businesses, Uncategorized

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