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Thomas Cook shares sink on rescue deal

World News from Reuters
World News from Reuters
last month|415 views
It's still the high season for holidaymakers ... But Wednesday (August 28) was anything but summer fun for Thomas Cook shareholders. They saw the value of their holdings dive 15 per cent in early trade .... After the terms of a rescue deal involving Fosun Tourism, banks and its bondholders were revealed. Fosun will contribute 450 million pounds, or about 550 million dollars, for 75 percent of the company and 25 percent of its airline. Banks and bondholders will stump up another 450 million for the remainder of both businesses. It leaves existing shareholders facing a significant dilution in their interests. A pioneer tour operator, Thomas Cook has struggled under high debt ... And from heatwaves keeping UK holidaymakers at home, rather than booking tour packages. The firm announced in July it was seeking new investment from Fosun. A warning then of the dilution to come already sent its shares into a tailspin. From over 13 British pence, they were just shy of 6 pence on Wednesday. 200 pence was the market close for Thomas Cook shares on the same day, a decade ago.