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( for me theses guys are complete losers)
There will be thousands of people agreeing with you in that context.
Yes, there potentially is, but after dilution it will probably be less than what the sp is just now...
Need to see what the deal is as PF also mentioned talks could collapse .
Barclay92, its been mooted in media speculation, more so Sky who appear to be well briefed, that Fosun will take the company private within time.
Until details are known, the risk is seriously high.
It's a p11ser overall.
"However, Fosun faced a rival bidder for Club Med which drove up the final price. That will most certainly not happen with Cook in its current circumstances."
www. travelweekly.co.uk/articles/338134/fosun-what-you-need-to-know
From the sky news rosy article. They touched on some positives but there is a lot of negatives.
Ps, I've been basically wiped out 10's of k's, upsetting but life will go on, just massively poorer.
"Unfortunately, the financial stress under which Thomas Cook was operating was well-known, which meant that the company did not receive offers for all or part of its airline business that genuinely reflected its value. Opportunistic buyers scented a distressed seller and pitched their offers accordingly.
That obliged the company to go back to its creditors and invite them to exchange some of their debt for new shares in the business.
And Mr Fankhauser did have some cards to play. Thomas Cook's bonds have recently been changing hands at 40p in the pound - pointing to scepticism among creditors that they would ever get all their money back if the company was overwhelmed by its debt.
Persuading bondholders to convert some of that debt into equity therefore made sense."
Hi Paul.
I think much of the destruction started when the last finance chief quickly left the building last summer...
The heatwave, the world cup, etc was used as an excuse for lower bookings last year, albeit that has some truth as TUI were also hit. Brexit woes don't help.
There has been lots of negative news leaked to the media, I'm sure UBS kicked it off last September, but the real knife wounds were from Citi, surprise surprise
If Citi and Fosun are colluding, the damage they have done with media assistance could be underestimated? Saying that, many thought RBS, Lloyds, etc were damaged by more by negative media.
This whole TC sp collapse stinks, i also think it's a long planned takeover under the guise rescue deal. Remember, telegraph reported saying talks have been ongoing for months!!
The complex debt for equity swap had taken months to agree and, although it will be another couple before it is finalised,
..........................
Months to agree?? So that suggests PF has been misleading? Bass.
As if such a fate isn’t shocking enough, the true financial cost has finally emerged. Thomas Cook, a humble tour operator providing package holidays to the masses, has shelled out a staggering £1.2bn in interest on its borrowings and fees since the 2012 refinancing, providing a veritable feast for the throng of bankers, lawyers, public relations specialists and restructuring experts that have artificially kept it on life support.
Its crash landing is an exercise in collective failure that the City will want to quickly forget.
End.
Thomas Cook boss Peter Fankhauser is a man in desperate need of a holiday. Like so many of his fellow countrymen of a similar age, the Swiss once looked tanned, fit and youthful but the toll of trying to turn around the struggling tour operator has caught up with the 58 year-old.
Ten days ago, the firm unveiled a £750m rescue deal – its second bailout in seven years – that hands control to Chinese conglomerate Fosun, and Thomas Cook’s lenders.
The complex debt for equity swap had taken months to agree and, although it will be another couple before it is finalised, the restructuring will save one of the travel industry’s most illustrious and oldest names from the scrapheap. Without the rescue, a crippling £1.6bn debt mountain would have forced it under.
While the ink was still drying on the rescue, Fankhauser took to the airwaves to talk up the bailout. Yet despite his valiant efforts, the best he could muster was to describe it as “a pragmatic solution that secures the business into the future”.
No wonder. Sure, one of the industry’s best known brands will live to fight another day, but it will almost certainly emerge from this latest shake-up as a shadow of its former self, dramatically paired back as some sort of psuedo online aggregator of holidays.
There’s no hiding the fact that it is a miserable outcome for a business that pioneered mass tourism and package holidays, has survived both world wars, and been through all manner of takeovers and corporate overhauls, to end up in the hands of its lenders.
In fact, Thomas Cook’s demise has been an exercise in value destruction on a scale few other company meltdowns can match. The malaise stretches back more than a decade and the overall bill runs into the billions of pounds.
First came a disastrous merger with MyTravel in 2007 under Fankhauser’s predecessor-but-one Manny Fontenla-Novoa, a deal that promised to create “an even stronger force” in the travel market, and that old favourite of egotistical, empire-building bosses: “significant value creation”.
The deal was a disaster. Earlier this year, Thomas Cook unveiled yet another profit warning, this time the result of a £1.1bn writedown on the MyTravel takeover.
Incredibly, just a few years later, Fontenla-Novoa doubled-down on his spectacularly stupid bet on the UK high street, merging its travel agency with the Co-op’s in 2011 and doubling the number of high street shops in the group to more than 1,200 just as internet bookings were beginning to take-off.
A financial bailout followed in 2012 and, yet, here it is seven years later having to undergo an even more severe rescue than the last after debts spiralled to a mind-boggling £1.6bn. This time, long-suffering shareholders will almost certainly be wiped out after watching their shares crumble from a high of nearly 300p to less than 5p over the last decade.
As if such a fate isn’t shocking enough, the true financial
Does anyone subscribe to the telegraph, if so could you post the full detail...thank you.
https://www.telegraph.co.uk/business/2019/07/20/thomas-cook-debacle-sorry-exercise-collective-failure/
Good work saj. Thank you.
I wonder how TC staff are feeling as many too were share holders in share save or otherwise.. .I'm aware a couple of investor relations staff are share holders... I also wonder if they sold before it emerged there were no binding bids....as that's when it really hit the fan. The airline selloff was a last hope before this D4E situation.
TBC Pre-close Trading Update
TBC Full Year 2019 Results
"Existing shareholders will be significantly diluted as part of the recapitalisation. However, shareholders may be given the opportunity to participate in the recapitalisation by way of investment alongside Fosun and converting financial creditors on terms to be agreed."
The statement isn't saying total wipeout - but - PF's word is as straight as wet spaghetti.
The plot continues.
If the company is going into Admin, maybe the person buying 500k tranches isn't aware? They maybe know something?
Hi, I have been badly burnt with TCG shares, which is very sobering, but it is what it is. Much to my amazement, I'm thinking of adding more next week.
Life is a risk everyday, to finances and health, or both.