* Company in talks with government, investors
* Board meetings being held this weekend
* Company needs to find $250 mln to fend off imminent
collapse
(Adds comment from Labour and workers' association)
By Kate Holton
LONDON, Sept 21 (Reuters) - Britain's Thomas Cook is
in talks with the government and potential investors about a
last-minute rescue deal to fend off a corporate collapse that
would send shockwaves well beyond the travel sector.
The world's oldest travel company was fighting for its
survival over the weekend after lenders threatened to pull the
plug on a rescue deal that has been months in the making.
Hurt by high levels of debt, online competition and
geopolitical uncertainty, Thomas Cook needs to find 200 million
pounds ($250 million) on top of a 900 million pound package it
had already agreed to see it through the winter months when it
needs to pay hotels for their summer services.
More than 20,000 jobs would be at risk if it collapses,
while tens of thousands of travellers would be left stranded.
A person familiar with the situation said the company was in
talks with the government and a number of potential investors
about bridging the funding gap. It is holding a board meeting
over the weekend to evaluate its position.
"We have not given up," the person said, declining to be
named due to the sensitivity of the situation.
The Transport Salaried Staffs Association, which represents
Thomas Cook staff, appealed to the government to step in with
"real financial support".
Manuel Cortes, the group's general secretary, wrote to the
government calling on it to "act if required and save this
iconic cornerstone of the British high street and the thousands
of jobs that go with it."
He wrote: "Thomas Cook can be a highly successful business
and must be given every opportunity to flourish. I urge you to
stand ready to assist Thomas Cook with real financial support.
"The company must be rescued no matter what. No British
government in its right mind would countenance the loss of so
many jobs and the prospect of just one major travel operator –
TUI – controlling the mass market."
Rebecca Long-Bailey, the main opposition Labour Party's
business policy adviser, said the situation was "yet more
evidence of this government's indifference to British jobs and
businesses going under."
"All viable options must be explored by Thomas Cook and the
government must consider stepping in and taking an equity stake
to avoid this crisis."
Were Thomas Cook to fail to find the funds it requires, it
could be put into administration, a form of creditor protection
that often precedes bankruptcy.
That would spark the largest peacetime repatriation in
British history with some 160,000 Britons currently enjoying
Thomas Cook holidays in destinations including California, the
Caribbean and Corfu.
In total, some 600,000 holidaymakers from markets including
Germany and Scandinavia could be stranded. The company's social
media channels are full of customers asking if they will be able
to get home.
The British government and the airline regulator have
already drawn up plans in case they need to step in to bring
customers home. But the fallout from any collapse would go far
beyond the interrupted holidays of its customers.
Founded in 1841 with a local rail excursion in Britain, the
company now runs hotels and resorts, airlines, cruises and
hundreds of high street travel agent stores. With 21,000 staff,
it operates in 16 countries and serves 19 million customers a
year.
Its demise could affect the economies of its big holiday
markets in Spain, Greece and Turkey, its shareholders and
lending banks, and the landlords of its many high street stores.
Its largest shareholder is China's Fosun, which
was due to take a central role in the rescue package.
The Department for Transport and the company declined to
comment on Saturday.
($1 = 0.8014 pounds)
(Additional reporting by Bhargav Acharya in Bengaluru and
Elizabeth Piper in Brighton; editing by Giles Elgood)
