RE: More sky news......21 Sep 2019 01:34
Heading: Holiday giant on the brink of collapse
Sub-heading: Ministers set to reject Thomas Cook bailout.
12.01 a.m. Saturday September 21 2019.
http://www.thetimes.co.uk/article/864e776c-dbee-11e9-9cfd-b79996a387b0
Thomas Cook is on the brink of collapse with the government poised to reject a last-ditch appeal for a bailout. Up to 150,000 Britons could be stranded abroad.
The world’s oldest travel company turned to ministers yesterday to request £200 million in emergency funding after lenders threatened to pull out of a rescue.
The Times understands, however, that the government is unlikely to intervene amid concern about the longer-term viability of the company. The tour operator’s board is expected to meet tomorrow, but a source close to the talks said it was “more likely than not” that it would enter administration.
Thomas Cook employs more than 21,000 people, including 9,000 in Britain, where it has 544 high-street travel agents. Its collapse would leave 150,000 Britons stranded and require the country’s biggest peacetime repatriation.
An emergency cabinet meeting would be convened in the event of a collapse to put the repatriation plan, codenamed Operation Matterhorn, into action. Frantic queries to Thomas Cook were being made last night by customers, some of whom have spent tens of thousands of pounds on holidays and weddings, over whether booked trips would go ahead and concerns that those overseas could be stranded. The cost of bringing home passengers has been estimated at £600 million.
John McDonnell, the shadow chancellor, told The Times: “It’s critical the government intervenes urgently to protect British holidaymakers, who through no fault of their own are facing this nightmare.”
The Thomas Cook group, founded in 1841 by a cabinetmaker and former Baptist preacher, runs more than 100 aircraft and 199 own-brand hotels. The surprise breakdown of a £900 million rescue agreed last month has thrown into doubt the plans of hundreds of thousands of customers.
About 600,000 people, including 150,000 Britons and about 300,000 Germans, are abroad with the operator. Thomas Cook has been brought to the brink by £1.7 billion of debt, uncertainty over Brexit affecting bookings, the heatwave last summer and competition in popular destinations.
The problems come after lenders, including Royal Bank of Scotland and Lloyds, required Thomas Cook to secure an extra £200 million to cover any shortfall over the winter season, on top of the £900 million agreement.
Continued...
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