(Adds background, details)
LONDON, Sept 20 (Reuters) - Britain's Thomas Cook
said its banks had ordered the company to find an additional 200
million pounds ($251 million) of funding in order to guarantee
the survival of the world's oldest holiday company.
Thomas Cook agreed the key terms of a 900 million pound
($1.1 billion) recapitalisation plan in a deal with Chinese
shareholder Fosun last month, but on Thursday a source
said that lenders were demanding another 200 million pounds in
underwritten funds to maintain their support.
"Discussions to agree final terms on the recapitalisation
and reorganisation of the company are continuing between the
company and a range of stakeholders," it said in a statement.
"These discussions include a recent request for a seasonal
standby facility of 200 million pounds, on top of the previously
announced 900 million pounds injection of new capital."
A source close to the discussions said on Thursday that
Royal Bank of Scotland (RBS) had hit Thomas Cook with a
last minute demand for the extra funding, adding that the
situation "was becoming more critical".
A spokesman for RBS said the bank did not "recognise this
characterisation of events" and was working with all parties to
"try and find a resolution to the funding and liquidity
shortfall at Thomas Cook."
Under the original terms of the plan, Fosun - whose Chinese
parent owns all-inclusive holiday firm Club Med - would
contribute 450 million pounds ($552 million) 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 bondholders were to stump up
a further 450 million pounds and convert their existing debt to
equity, giving them in total about 75% of the airline and up to
25% in the tour operator business, the group said.
"The recapitalisation is expected to result in existing
shareholders' interests being significantly diluted, with
significant risk of no recovery," Thomas Cook said on Friday.
"The Company will provide further updates in due course."
($1 = 0.7953 pounds)
(Reporting by Alistair Smout; editing by Kate Holton)