LONDON (dpa-AFX) - Troubled travel company Thomas Cook Group (TCKGY.PK, TCG.L) said that it is in advanced discussions with the banks and its largest shareholder, Fosun Tourism Group regarding the key commercial principles, by which they would make a substantial new capital investment as part of a proposed recapitalisation and separation of the Group.
As per the proposal, Thomas Cook is targeting an injection of 750 million pounds of new money which would provide sufficient liquidity to trade over the Winter 2019/20 season and the financial flexibility to invest in the business for the future.
The recapitalisation proposal will require a reorganisation of the ownership of the Tour Operator and Airline businesses which is expected to result in Fosun owning a significant controlling stake in the Group Tour Operator and a significant minority interest in the Group Airline.
Looking forward, Thomas Cook expects underlying EBIT in the second half to be behind the same period last year.
Copyright RTT News/dpa-AFX