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As you can imagine, Mallorca as well as Spain, has been hit badly with the TC demise as they had a large number of hotels in 100% guarantee and had actually rented out hotels with direct contracts for local suppliers. A small local family bakery has been left owing over 23.000€ another butcher 60.000€
However the stories that are hitting the headlines here are not getting any sympathy or making it any easier to forget.
You will need Google translate for this one, but basically today headlines are that management cleared out the cash from the hotels that that they have rented on the Friday, someone somewhere is sitting on a very bumpy matteress.
https://www.ultimahora.es/noticias/local/2019/09/27/1109251/thomas-cook-directivos-llevaron-millones-baleares.html
There have been crisis meetings set up since this all happened but the local hoteliers as well as all the suppliers are not happy and want some legal advice , they also want answers from the top .... There again don't we all :)
Wrong Pearls Fosun were also getting cold feet. UK GOV said in HoC that it was inevitable the company would fail and that even if there was a bailout we would end up repatriating further down the line.
The European TC arms will also go to the wall within next 6 months, they have a lifeline to find a buyer (which may happen)
Air Berlin were give a loan in the same but they went tits up
The correct decision has been made
Wrong Quisty. The £200m would have allowed the takeover to proceed by Fosun. Then it would be off the government's hands entirely.
That level of financial misunderstanding is a real problem out there, as is now witnessed at Metro Bank
This company was burning money by the day. It is disgusting that it was allowed to continue the past 12 months. But as this Board probes people do not understand financials and bang on about 'too big to fail' and the 'brand'.
If the UK GOV paid up £200m it would have lasted 2 weeks and then more would have been begged for. It would have ended up costing the taxpayer more and more. And in the end there would still be a repatriation.
Well done UK GOV.
I see the banks are now being forced to take a GBP 1.8 billion writedown over this fiasco, meanwhile it is now reported to be costing the UK Government at least GBP 1 billion to deal with all the repatriation / hotel etc costs of this.
That is a good use both of bank shareholder funds, and of public money!
Why on earth couldn't the GBP 200m to keep the thing running be supplied? Now it has cost markedly more. Those making such inept decisions should be up on financial manslaughter charges.
Unqualified Directors were paid Millions doing what?
Short Sellers collect profits doing what?
Amateurs collect Millions and destroy investment.
I doubt if they have trouble sleeping. Their pillows must be soft and plumped with all their millions in bonuses.
I hope all the former Directors have trouble sleeping at night..... https://www.bbc.co.uk/news/av/uk-wales-49817493/thomas-cook-collapse-woman-raises-funds-for-staff-on-flight
Investors lose while short sellers make fat profits.
SHORT SELLERS have insider information. Short Sellers
are PRO TRADERS. Investors are not. 200Mill Profit doing what?
From Friday 4.30 p.m - Monday. Insider Information . That sums up the City
of London, a Shark Pit.
Ceac
Where’s your source for the Anex bid??
As usual the media have got themselves very confused over executive remuneration. The "bonuses" they have supposedly received are not bonuses at all. In the past three year, there LTIP awards have lapsed every year because performance targets have not been met (and rightly so) and their annual bonus plan has paid out once (in respect of 2017 performance and at a very low level) in the past three years. The amounts received are simply annual salary (about £750K for the ceo if i remember rightly) and pension contributions. If the labour party and their anti business agenda want to claw back fixed pay then that is very dangerous territory.
Even if they do pay back their bonus (I hope they do), that is absolutely nothing to the debt they built up, or the mayhem they have caused to all concerned, employees, pi's, off shots from the supply chain etc
No moral compass with this board ,losing money but still take huge bonus’s,hopefully investigated and the bonus over the years taken back ,or even better they do it on their own accord ,doubt it .
hi everyone, sorry to have this happen to you all. i have 2 questions, if i may? do you know when the board got there bonuses last and also, bearing in mind that thomas cook didnt get the funding required, is that because the banks/finance companies they were dealing with involved in tui?
im just intrigued. im sorry for the intrusion on your board at a time like this, but these 2 questions as an outsider looking in make me very curious.
appreciate your comments, and once again.... very sorry for those of you that lost out.
hTTps://www.thesun.co.uk/news/9995295/thomas-cook-boss-pocketed-millions-in-bonuses/
"Some investors are O.A.Ps. Many are computer illiterate.Many LTHs are old and disabled."
and ?
so......maybe buying a fund and having a fund manager would have suited them better
you dont get immunity to risk just because you are old ...
The idea is..you move to lower risk investments ...like Government bonds etc
"investors should be told to stay away."
well if they could read an annual report and the updates then maybe they would.......how many times should you warn someone a Tsunami is on its way ??
Many LTHs are old and disabled. They bought TCG when they were young and enjoyed
travelling. Traders know what is going on and trade the market up and down making
profits. Last Friday the writing was on the wall and many shorters closed their position
and others sold. Traders are in control and investors should be told to stay away.
LTHs are the losers. Hedge fund Managers collected 200 Mill doing what?
fonters
to be fair the Directors have been playing with the result of the last capital re-organisation which put them in the debt situation ...they have been struggling to have money to invest ever since .... a wonder they kept it going this far
Without the last capital re-organisation they would have been bust long ago...
Mapp, you're looking at the wrong villains here. TCG went bust because it owed over 3 billion quid, and wasn't making enough profit to service the debt (let alone ever repay it). Blame for this lies completely with the directors who got the company into this mess. Not with shorters, banks, hedge funds, the govt., auditors or Santa Claus. The directors. Period.
It was reported that Hedge Funds made a profit of £200 Mill or more.
Over night . They made what investors lost. Looting is acceptable in Finance.
In the real world one goes to prison.
Some investors are O.A.Ps. Many are computer illiterate. Those are the ones
who got another kick in the teeth and should not be allowed to buy shares.
Many are bribed with special offers. Discounted holidays? I was not a LTH but
I am concerned about investment and keep an eye on different boards. Who bought
and sold last Friday? I suspect traders only and not investors who might have been
on holiday?
Thanks Lazarus1. BBC presented the article as a win for employees and I guess it is in these circumstances.
"Short Sellers must feel guilty. They can afford to help those in need. It is not only weak management. Short Sellers are greedy, irresponsibl and ruthless. Wealth destruction thugs."
What utter nonsense ...in this case they raised the alarm and no doubt saved many a poor soul from buying shares at a vastly over inflated price
They also helped holders sell at a reasonable price before things gradually got worse and worse
Of course there were those who didnt listen to the canary in the coalmine
.... and they no doubt caused their own wealth destruction
the buck stops with BOD, short sellers were not in any way responsible for the huge amount of debt or collapse
Short Sellers must feel guilty. They can afford to help those in need.
It is not only weak management. Short Sellers are greedy, irresponsible
and ruthless. Wealth destruction thugs. The system is rotten from TOP to Bottom.