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Thomas cook desperately tries to prevent collapse.
According to the Daily Mail, Thomas Cook was on the brink of collapse last night. Which would plunge hundreds of thousands of customers holiday plans into turmoil? Although they have been battling to secure a rescue deal the company which is 178 years old could go bust by Sunday it is believed to have been said by company insiders.
It was announced in July that a rescue deal was being hammered out with a Chinese company Fosun, but a group of banks including RBS are thought to be threatening to scupper the rescue deal. Because it is believed they are demanding an extra £200 million to be pumped into the rescue package. If they don’t back down it is believed Thomas Cook would have to call in administrators within days. Although it is believed that Thomas Cook is focused on completing the deal and is negotiating with banks, bondholders, and Fosun to attempt to keep the rescue on track.
If Thomas Cook ends up failing it will cost the taxpayer a huge amount about £600million to bring home the 180,000 Thomas Cook customers who would be abroad if the company collapsed next week. It is believed that RBS has denied putting pressure on the deal. If you are on a package holiday you are covered by the Air Travel Organisers Licence Scheme ATOL.
Source Daily Mail.
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