Travel company Thomas Cook Plc has revealed that it is in advanced talks with noteholders for a £150 million cash injection, which will add to the £750 million rescue it was negotiating with top shareholder Fosun Tourism.
Thomas Cook said that the extra cash will provide further liquidity through the coming 2019-20 winter cash low period.
The Financial Times had first reported on the new capital injection on Friday August 9.
In July, Fosun and Thomas Cook began negotiating a £750 million rescue that would give the Chinese conglomerate control of the indebted British group's package-tour business.
On Monday August 12, Thomas Cook said that it had made significant progress towards finalising the key terms of the recapitalisation with Fosun, lending banks and noteholders.
Restructuring Its Tour Operator And Airline Businesses
The proposed recapitalisation would involve ownership restructuring of its tour operator and airline businesses, resulting in bank debt of about £650 million and bond debt of about €1.15 billion being converted into equity.
Existing shareholders are likely to be "significantly" diluted as a part of this recapitalisation, Thomas Cook said, adding that it expects to implement the plan in early October.
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