Thomas Cook Regulatory News (TCG)

9 Jun 2009 14:01



NOT FOR RELEASE OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA OR JAPAN

9th June 2009

Thomas Cook Group plc

The Board of Thomas Cook Group plc ("Thomas Cook") notes the announcement made earlier today by Arcandor AG ("Arcandor"), its 52.8% shareholder, that Arcandor has applied to commence insolvency proceedings.

The purpose of this announcement is to clarify the implications of this development for Thomas Cook's business.

Today's announcement will have no impact on customers and is not expected to result in any adverse effect on any of the contractual arrangements of the Thomas Cook group.

Thomas Cook's financing arrangements are completely independent from Arcandor's financing and are not affected by today's development.

In accordance with the relationship agreement between Thomas Cook and Arcandor, Thomas Cook has been operated as a standalone entity, separate from the Arcandor group. As a result, there are minimal balances outstanding between the two groups.

Trading balances owed by the Arcandor group to the Thomas Cook group arising in the ordinary course of business are less than £1m.  There are no non-trading balances owed by the Arcandor group to the Thomas Cook group. There are no cash pooling arrangements between the Thomas Cook group and the Arcandor group and the Thomas Cook group has not guaranteed any obligations of Arcandor.

Thomas Cook will closely monitor the implications of this development in respect of Arcandor's 52.8% shareholding in Thomas Cook. 

Thomas Cook confirms that it has not had any approach and is not in any discussions in relation to the acquisition of the Arcandor stake or in relation to a potential offer for the Company.

Manny Fontenla-Novoa, CEO, Thomas Cook Group plc, said

"We are saddened by the news announced today by Arcandor. Dr Karl Eick and his colleagues have worked tirelessly to address their financial difficulties and Arcandor has been a constructive and supportive shareholder of our business. 

Arcandor's insolvency has no impact on Thomas Cook's financial position or its operational performance, nor on its management and staff. We remain as a completely independent and separate business, ring-fenced from Arcandor. There is no impact whatsoever on our aircraft or our hotel relationships, nor on the holidays that we provide to our customers. It remains very much business as usual at Thomas Cook."

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