Thomas Cook faces crucial investor vote

Thomas Cook faces crucial investor vote

A crucial breakthrough in Thomas Cook’s turnaround strategy is expected today when it secures approval for two key disposals.

Europe’s second largest travel group needs investors to back the planned sale and leaseback of part of its aircraft fleet and the disposal of five Spanish hotels.

Cook said in a shareholder circular that its directors were confident that the required majority would be achieved when investors vote on the disposals.

Major stakeholders including fund manager Invesco, Standard Life and Marathon have all expressed support for the resolutions.

But failure to support the fundraising move would jeopardise the company's recent £1.4 billion deal with lenders, including Royal Bank of Scotland and Barclays, to extend the maturity of its bank loans to 2015.

The group is due to publish its interim results on Thursday but has already revealed losses of £262.7 million for the winter period after a particularly poor performance in Canada and France.

The group last week unveiled Harriet Green, currently the boss of Leeds-based electrical components distributor Premier Farnell, as its new chief executive from July 30.

Chairman Frank Meysman yesterday revealed that the overhaul at  Cook is around half completed with more work to be done in the UK including a drive for more online bookings.

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