August 9, 2019 / 5:02 PM / 15 days ago

Thomas Cook in talks for further 150 million pounds rescue - FT

The Thomas Cook logo is seen in this illustration photo January 22, 2018. REUTERS/Thomas White/Illustration

(Reuters) - Indebted travel group Thomas Cook Plc (TCG.L) is in advanced talks with bondholders to raise 150 million pounds apart from the 750 million pound rescue it was already negotiating with top shareholder Fosun Tourism (1992.HK), Financial Times reported on Friday.

The company, which has been hit by fading demand for its package holidays, plans to use the proceeds to help recapitalise its tour operating business.

The Financial Times reported that Thomas Cook was looking to increase size of the cash being committed to the deal with representatives for Fosun, co-founded by Chinese billionaire Guo Guangchang.

The report said part of the extra 150 million pounds was expected to be provided by the bondholders, although no deal had been agreed. Thomas Cook wants to wrap up the deal by the end of September.

Thomas Cook declined to comment on the report.

In July, Fosun and Thomas Cook began negotiating a 750 million pound rescue that would give the Chinese conglomerate control of the indebted British group’s package-tour business.

Thomas Cook said that the cash from the proposed deal, which would mark one of the most significant purchases of a British company by a Chinese group in years, would be enough for it to trade over the winter season and give it flexibility to invest.

Reporting by Samantha Machado and Sangameswaran S in Bengaluru; Editing by Shailesh Kuber

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