While i have no doubt that the BOD did a ****ty job, Brexit played a major factor in the demise of TC.
They pay their hoteliers in EUR and fuel jet in USD.
TC had to keep their holiday package prices the same as before the Brexit vote to stay competitive while the GBP took a 23% hit since the brexit result.
You do the maths and tell if this 23% slump in GBP will hit their P&L or not.
Germany to offer 380 mln euro bridging loan to Condor - Reuters
BERLIN, Sept 24 (Reuters) - Germany has decided to guarantee a bridging loan of 380 million euros to Condor, the German airline owned by insolvent British travel operator Thomas Cook, Economy Minister Peter Altmaier said on Tuesday.
"Condor is a profitable company and therefore our decision was based on economic factors, not on political criteria," said Altmaier, adding the decision meant that many of the roughly 5,000 workers would be able to keep their jobs.
Altmaier added that the state of Hesse, where Condor is based, would participate in the financial aid, as previously reported by Reuters. (Full Story)
(Reporting by Madeline Chambers
Editing by Chris Reese)
I’m sorry I don’t mean to be harsh on PI’s SH as i do really feel your pain i was in your shoes not long ago in DEB, when i mentioned SH i mean II’s SH, they are the ones who can reshuffle directors with they big holdings
The question is what happens next if they are rescued? Burn more cash?!?
Led by boss Peter Fankhauser, Thomas Cook executives are holding daily board meetings to consider the company’s future.
Many observers believe it has only a matter of days to find the £200m in cash or be forced to file for administration. Alix Partners has been lined up to take the appointment.
Thomas Cook has spent the whole summer trying to agree a rescue deal with its biggest shareholder, Chinese conglomerate Fosun, lenders and bondholders.
The restructuring would see Thomas Cook split into a travel agent and airline. Fosun would have a 75pc stake in the former and own 25pc of the latter. The company nearly failed in 2011, only to be saved by its banks - including RBS - which backed a financial restructuring.
Just 18 months ago it was worth £2.2bn, but a summer heatwave wilted Thomas Cook’s profits and sent shares into freefall.
Shares closed on Friday at 3.45p each, valuing the company - whose annual revenue is almost £10bn - at just £53m.
If Thomas Cook were to fall into administration, planes would be grounded instantly, requiring the Government and aviation regulator the Civil Aviation Authority to fly customers home.
The cost of repatriation has been estimated at £600m, much of which will be borne by taxpayers.
Pilots' union Balpa urged Transport Secretary Grant Schapps to take action. “RBS and Lloyds [another member of the banking syndicate] should be told by the Prime Minister to support Thomas Cook. If Thomas Cook goes into administration it will cost the taxpayer as much to repatriate holidaymakers as it would cost to save Thomas Cook.
"The Government sat on the sidelines wringing its hands when Monarch Airlines was let down by its financiers, this time Government needs to get a grip and do its bit to save Thomas Cook.”
Thomas Cook said: “Discussions to agree final terms on the recapitalisation and reorganisation of the company are continuing.”
On Thursday RBS attacked “the characterisation” of it as reneging on promises. “RBS has provided considerable support to Thomas Cook over many years.”
A row between Thomas Cook and taxpayer-controlled Royal Bank of Scotland has escalated with both sides blaming each other for taking the travel agent to the verge of collapse.
The 178-year-old company is racing to secure £200m of funding in the hope of averting a disaster that would leave more than 150,000 holidaymakers stranded.
It also emerged on Friday that Thomas Cook has made an 11th-hour appeal for a government bailout in a bid to avoid collapse that would leave 150,000 holidaymakers stranded.
Insiders at Thomas Cook claim that RBS blindsided executives by demanding £1.1bn instead of £900m of cash to rescue the company during a meeting on Sep 9.
Those at the lender - one of a 17-strong syndicate - are understood to have been incensed by such allegations. Banking sources insisted that the £1.1bn - made up of £900m of new cash and a £200m standby loan - had long been discussed throughout the summer.
A report by restructuring consultancy FTI is at the heart of the row. Published in August, sources at the banks said the analysis made it clear that there was a “potential requirement” for an additional £200m.
Those at Thomas Cook claim there was no reference to the £200m in the FTI report.
Banking insiders said an anonymous third-party had been lined up by Thomas Cook to provide the money. It was this institution that walked away from a deal in recent days.
Those at the travel agent deny any one party had been identified. The singling out of RBS - which is 62pc owned by the taxpayer - sparked speculation within the City that Thomas Cook was put up as the fall guy if the travel agent were to fail.
LONDON (AP) — Thomas Cook, one of the world's oldest and largest travel companies, is facing a race against time to stay afloat.
The debt-laden British-based company has confirmed it is seeking 200 million pounds ($250 billion) in extra funding to avoid its collapse.
The company says it is in talks with stakeholders such as leading Chinese shareholder Fosun to bridge the funding gap and stave off entering administration.
Thomas Cook said in a statement on Friday that the money required would be a "seasonal stand-by facility" and come on top of the 900 million pounds it had already raised from Fosun and its lenders.
If the company goes under, an estimated 180,000 people could be stranded abroad. Thomas Cook employs 22,000 staff members around the world, including 9,000 in its home market.
“If the travel group cannot get the extra £200 million underwritten, it risks going bust, forcing the Civil Aviation Authority, a public corporation of the Department for Transport, to pick up the estimated £600 million cost of repatriating British holidaymakers.”
As always we tax payers end up paying the price!!
I wonder what will the official answer be if one day I decide to walk into the department of transport and request £10K only!!!
1. F*uck off
2. Do one
3. Are you insane