RE: FVW article in Germany2 Sep 2019 17:19
(as per Google translate)
Klaus Hildebrandt, Michael Cranes
Around 1.6 billion pounds (nearly 1.8 billion euros) of debt away and in addition 900 million pounds of fresh capital for the financially weak winter season: Thomas Cook has after the agreement in principle on the rescue deal with the largest shareholder Fosun and the major banks and corporate bond holders have a real chance of a fresh start. However, the contract still numerous authorities and especially smaller shareholders and bondholders agree.
The Chinese
Conglomerate Fosun will invest £ 450m and will receive at least 75% of the tour operator and a 25% share in the airlines. The main creditor banks and bondholders are once again providing the same amount of fresh capital and converting the existing debt into a stake of probably 75 percent in Group Airline and up to 25 percent in the organizer. The organizer, which also includes its own sales department and hotel brands, is therefore separated as a separate company from the airlines, including Condor.
Fosun can
because of the aviation rights do not take the majority of the airline. In addition, the Chinese invest in their home country and their daughter Club Med only in the hotel and tour operator business. In the industry is expected that Fosun and the banks for the profitable TC airline with its more than 100 machines (see article on the right) will seek a buyer in the medium term. Thomas Cook had initially stopped the sales process started in the spring.
The agreement in principle is a breakthrough, but the deal is not perfect yet. Small shareholders are angry. Their shares, which have fallen 93 percent in one year anyway, will become virtually worthless as a result of the debt conversion and capital increase. This also applies to the good eight percent stake, which had acquired the Turkish Anex boss Neset Kockar. Sources close to Kockar claim that looking at the numbers was very sobering, and he therefore had not bought more shares. Thomas Cook, on the other hand, says Kockar saw no chance to play an active role in the reorientation.
The tourist group emphasizes that all shareholders have the opportunity to participate in the capital increase, and to reach a consensus with all shareholders and creditors. But whether the smaller shareholders nachschießen further money is doubtful. The banks inevitably move with, because otherwise they would have to fear a total loss.
With Thomas Cook
Despite the many steps that are still needed, including due diligence and multiple agreements between Fosun and the banks, you are confident that the deal will work. If the shareholders do not agree with the quota of 75 percent of the restructuring, there is under British law the possibility to enforce this consent, it says in the corporation. Not exactly the fine English style, but then maybe the last resort for the rescue package.
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