Holiday firm Thomas Cook agrees key terms of rescue deal

Thomas Cook Group said on Wednesday it had agreed the key commercial terms of a rescue package with investor Fosun Tourism, its banks and a majority of its bondholders.

The British package tour operator said in July it was working to secure new investment from shareholder Fosun Tourism, which would see the Hong Kong group take control of the business at the expense of other shareholders.

The terms announced on Wednesday will see Fosun contribute 450 million pounds of new money in return for at least 75% of the tour operator business and 25% of the group’s airline.

Thomas Cook’s lending banks and noteholders will stump up a further 450 million pounds for 75% of the airline and up to 25% in the tour operator business, the group said.

The rescue package will give the Shanghai-based Fosun another foothold in the European market, where it already owns the holiday resort chain Club Med and the Premier League football club Wolverhampton Wanderers. Fosun holds an 18% stake in Thomas Cook.

Via Reuters/The Guardian