|Bid||3.5390 x 0|
|Ask||3.5680 x 0|
|Day's Range||2.0001 - 3.9900|
|52 Week Range||2.0000 - 64.4500|
|Beta (3Y Monthly)||0.55|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
Britain's Thomas Cook is in talks with the government and potential investors about a last-minute rescue deal to fend off a corporate collapse that would send shockwaves well beyond the travel sector. The world's oldest travel company was fighting for its survival over the weekend after its lenders threatened to pull the plug on a rescue deal that has been months in the making. Hurt by high levels of debt, online competition and geopolitical uncertainty, Thomas Cook needs to find another 200 million pounds ($250 million) on top of a 900 million pound package it had already agreed, to see it through the winter months when it needs to pay hotels for their summer services.
(Bloomberg Opinion) -- Off for a bit of late summer sunshine? I hope you didn’t book with Thomas Cook Group Plc. The struggling British tour operator is in last-minute discussions with lenders to try to stave off a collapse because of a funding shortfall of 200 million pounds ($250 million).A company failure would be disastrous for half a million holidaymakers. Bondholders would suffer heavy losses too if Thomas Cook agrees to swap its debt for equity, as has been proposed. Administration might be even worse as debt-owners could get nothing. It’s less of a drama for equity investors. They’ll probably be wiped out either way. The shares fell as much as 28% on Friday to a fresh low of 3.2 pence before recovering slightly.Repatriating Thomas Cook’s customers would be a massive logistical operation. It would be embarrassing for the company and the U.K. government as about 150,000 of those affected would be Brits.Royal Bank of Scotland Group Plc is one of the lenders demanding that Thomas Cook finds another 200 million pounds in backup financing facilities before they will take part in a proposed 900 million pound capital injection intended to safeguard the company’s future. That rescue deal is being led by China’s Fosun Tourism Group, Thomas Cook’s biggest shareholder.Unless a solution is found soon, we may be confronted by TV pictures of crying babies and angry pensioners, complaining about their struggles to get home from their late summer break. As such, the company will want to avoid a collapse at all costs. As well as its worried customers, Thomas Cook employs 21,000 people and has 560 U.K. shops. Its options are limited, though.Finding someone to fund the shortfall is one possibility. Yet Fosun, which has agreed to contribute half of that 900 million pounds of rescue funds in return for 75% ownership of Thomas Cook’s tour operator and 25% of its airline, might be reluctant to stump up more. Selling off assets is another potential way out for the British company, which can trace its history back to 1841. However, big disposals are unlikely given the agreement to transfer those stakes to Fosun.The best hope is persuading RBS and the other lenders to back down on their demands, enabling the financial rescue to go ahead. But that’s a long shot too. The banks have seen Thomas Cook’s funding requirement balloon this year as its trading weakened, and they want reassurance that it can make it through the less busy winter period.Fosun could conceivably pick up Thomas Cook’s tour operator on the cheap after a collapse. But the damage would be so great to the brand that there may not be much point by then. While another rival such as Germany’s Tui AG might cherry pick some assets, it would be one of the beneficiaries of Thomas Cook’s demise anyway.Tui has had its own problems after the grounding of its Boeing 737 Max fleet. But the company has its own hotel and cruise ship brands, leaving it in a stronger position than its troubled rival. With capacity coming out of the market in the event of the Thomas Cook’s collapse, it would be even better placed. The same can’t be said for any customers left stranded if Thomas Cook can’t find the answer to its funding problems soon. To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
(Bloomberg) -- Companies in Europe are about to take a leaf out of the U.S. playbook on credit default swaps by making it harder for hedge funds to profit from a company’s collapse.Junk bonds financing the buyout of Merlin Entertainments Plc include terms in their documentation that prevent investors holding ‘net short positions’ with CDS contracts from voting on amendments, waivers or default notices. The provision follows similar efforts by high-yield borrowers in the U.S. sidelining speculators with an interest in seeing a company going bust.“This is the first time the provisions have been seen in European deals,” analysts at Aggredium Finance Ltd. said. “Put simply: If you bring a notice of default, you have to promise that you’re not banking harder on the company’s failure to pay its debt than its ability to sail through to maturity.”CDS contracts typically insure bond or loan holdings against the risk of default and are frequently used by hedge funds betting on companies running into trouble. Some investors buy default protection in excess of their underlying credit exposure -- hence ‘net short’ -- to profit as the company’s credit risk worsens or to receive a windfall if the borrower goes bankrupt.In recent years that has led to manufactured defaults, where hedge funds have enticed companies to miss bond payments they could otherwise make to pocket a payment on swaps. Some of the most high-profile cases involved U.S. homebuilder Hovnanian Enterprises Inc. and Spanish gaming company Codere SA.This type of hedge fund manipulation is leading to closer scrutiny of the $10 trillion credit derivatives market that already fell out of favor after being blamed for exacerbating the global financial crisis. More recently, swaps have found themselves at the heart of restructuring procedures such as the ongoing attempt to rescue Thomas Cook Group Plc, which CDS holders are threatening to block.Read more: Thomas Cook’s Rescue Tests Reputation of Default ProtectionNet-short language “is still untested so it’s anyone’s guess how the provisions will impact bond prices, liquidity, or even whether the company will even be able to figure out if a holder is net short or not,” the Aggredium analysts said.U.S. PrecedentMerlin’s $982 million bond financing, which backs the buyout by the Danish family behind Lego in a consortium including Blackstone Group LP, is expected to launch in the near future, according to people familiar with the matter, who asked not to be identified discussing a private matter.Another deal for U.K. satellite company Inmarsat Plc is also adopting the language. It’s offering $1.125 billion of bonds due in 2026 that include same net-short terms, according to documents seen by Bloomberg News.Proceeds from Inmarsat’s bond sale will finance its acquisition by Warburg Pincus, Apax Partners and two Canadian pension funds. That transaction also includes a time limit on covenant enforcement, which is also aimed at mitigating risks from net short activists, according to debt research firm Covenant Review.Representatives for Merlin and Connect Bidco, the consortium bidding for Inmarsat, both declined to comment.Net short language has been only been seen in U.S deals so far -- the first high-yield bond offering with a net-short disenfranchisement provision was a $300 million issue by Sirius Computer Solutions in June.\--With assistance from Katie Linsell.To contact the reporters on this story: Laura Benitez in London at email@example.com;Sally Bakewell in New York at firstname.lastname@example.orgTo contact the editors responsible for this story: Vivianne Rodrigues at email@example.com, Charles DalyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Thomas Cook Group Plc has told backers of its $1.1 billion rescue that it needs even more funds as it heads into the autumn season when travel firms spend more than they earn.The company said it will require another 200 million pounds ($251 million) on top of 900 million pounds already agreed in a bailout led by Fosun Tourism Group. Thomas Cook’s shares fell as much as 28% after the company disclosed it had requested the extra cash.The company that invented the package holiday has gone within a year from concern about how a freak north European heatwave in 2018 hurt sales to a full-on fight for survival.It’s trying to save itself by swapping existing debt into shares, leaving Fosun holding the majority of its tour-operating business while a group of creditors will control its airlines. On Sept. 17, it filed for Chapter 15 court protection in the U.S.The company needs the support of investors holding at least 75% of its debt when it puts its restructuring proposal to a vote on Sept. 27, a crucial step to get the plan approved by a U.K. court.“The next few days are going to be pretty crucial for Thomas Cook,” said Neill Keaney, an analyst at CreditSights in London. “Time is of the utmost importance and things can unravel pretty quickly.”A group of hedge funds is threatening to block the rescue because it may stop them cashing in holdings of credit default swaps that pay out when a company defaults.Restructuring efforts also face the threat that customers stop buying vacations and flights from Thomas Cook for fear that the company won’t be around to honor their bookings.The British Airline Pilots Association called on the U.K. government in a statement Friday to intervene and pressure banks to provide additional liquidity.The stock was trading down 22% at 3.50 pence as of 10:52 a.m. in London, valuing the travel operator at around 54 million pounds, the lowest since the company took its current corporate structure in 2007.\--With assistance from Katie Linsell.To contact the reporters on this story: Irene García Pérez in London at firstname.lastname@example.org;Richard Weiss in Frankfurt at email@example.comTo contact the editors responsible for this story: Vivianne Rodrigues at firstname.lastname@example.org, Luca Casiraghi, Chris VellacottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Shares of Thomas Cook Group Plc tanked after the U.K. tourism operator said it needs more emergency financing.Thomas Cook said it will require another 200 million pounds ($251 million) for a “seasonal standby facility,” sending the shares down as much as 28%. The company already increased the size of a bailout plan in August by 20% to 900 million pounds.Thomas Cook is trying to save itself by selling the majority of its tour-operating business to the tourism arm of Chinese shareholder Fosun International Ltd., and its airlines to a group of creditors, a rescue plan that would swell to 1.1 billion pounds. On Sept. 17, it filed for Chapter 15 court protection in the U.S., and with the summer travel season in the northern hemisphere ending, it’s poised for a seasonal swing from generating to burning cash.The company that invented the package holiday has gone within a year from concern about how a freak north European heatwave in 2018 hurt sales to a full-on fight for survival. The stock was trading down 25% at 3.35 pence as of 9:46 a.m. in London, valuing the travel operater at 52 million pounds, the lowest since the company took its current corporate structure in 2007.Efforts to raise cash by selling the airline operations thus far didn’t succeed, and while banks and bondholders haven’t turned their backs on the tour operator yet, any restructuring efforts will prove void if customers stop buying vacations and flights from Thomas Cook for fear that the company won’t be around to honor their bookings.The British Airline Pilots Association called on the government in a statement Friday to intervene and pressure banks to provide additional liquidity.To contact the reporter on this story: Richard Weiss in Frankfurt at email@example.comTo contact the editors responsible for this story: Daniel Schaefer at firstname.lastname@example.org, Tom Lavell, Andrew NoëlFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Thomas Cook has approached the UK government for a bailout in a last-ditch attempt to save itself from collapse after its lenders threatened to pull out of a proposed rescue deal. that would allow Thomas Cook to cover a shock demand from its banks for additional cash as part of a £1.1bn recapitalisation. A state bailout of the group would be highly controversial, but would save the government hundreds of millions in expected costs should it need to fly home 150,000 stranded UK holidaymakers.
one of the UK’s top banks in November, after being confirmed as the successor to the Royal Bank of Scotland chief executive Ross McEwan. The state-owned lender will also become the only company in the FTSE 100 index with women in both its top two executive positions, following Katie Murray’s appointment as chief financial officer last year. Ms Rose, who currently leads RBS’ commercial and private banking business, had long been seen as the favourite to succeed Mr McEwan.
Britain's Thomas Cook needs to find an extra 200 million pounds ($251 million) to satisfy its lenders or one of the world's oldest holiday company risks collapse, potentially stranding thousands of holidaymakers across Europe. Demand for an extra funding facility puts that deal at risk, as well as the jobs of Thomas Cook's 21,000 employees and the holidays of 600,000 customers, mostly from Germany, Britain and Scandinavia. Thomas Cook said the recapitalization posed "a significant risk of no recovery" for the diluted shareholders.
British travel firm Thomas Cook on Friday said an extra 200 million pounds ($251.48 million) had been requested by stakeholders in talks to finalise the restructuring plan to save the company. The world's oldest holiday company, agreed the key terms of a 900 million pound ($1.1 billion) recapitalisation plan in a deal with Chinese shareholder Fosun last month, but on Thursday a source said that lenders were demanding another 200 million pounds in underwritten funds. "Discussions to agree final terms on the recapitalisation and reorganisation of the Company are continuing between the company and a range of stakeholders," Thomas Cook said in a statement.
The 178-year-old tour operator, which has been negotiating with its debtholders and largest shareholder Fosun on a rescue deal, had to delay a crucial hearing on the deal this week as banks including RBS and Lloyd’s pushed for an extra credit facility to be put in place to see the holiday provider through the winter season. In July, Thomas Cook presented a business plan to its lenders that showed it required £900m in financing. The rescue deal agreed by Thomas Cook will see £450m of capital put forward by Chinese conglomerate Fosun in return for control of 75 per cent of the group’s tour operator business and up to 25 per cent of its airline.
(Bloomberg) -- The $10 trillion market for derivatives that pay out if a company goes bust faces a test of its credibility as U.K. travel agent Thomas Cook Group Plc heads toward a $1.1 billion rescue.Thomas Cook filed for Chapter 15 bankruptcy protection in the U.S. on Monday as part of a broader debt restructuring. But the filing stopped short of stating the company is insolvent, an ambiguity that means hedge funds holding credit-default swaps insuring Thomas Cook debt may not get their money.Investors holding the swaps are already battling against a technicality in the terms of Thomas Cook’s planned debt restructuring that threatens to make their CDS holdings worthless. The rescue centers on converting Thomas Cook debt into equity, which leaves the swaps with no bonds to insure.“Buying insurance against a default and then being unable to claim when the company does actually default defeats the point of having it,” said Henry Craik-White a portfolio manager at Wells Fargo Asset Management in London. “It makes a mockery of the product.”CDS contracts pay out when a Determinations Committee of swaps traders decides that a company running into difficulty and failing to keep up with its debt obligations constitutes a so-called credit event.The hedge funds holding Thomas Cook CDS are threatening to scupper the rescue plan, which is led by China’s Fosun Tourism Group, by blocking it at a creditor meeting later this month. If that maneuver is successful, it could also challenge the reputation of the CDS market.Regulators are already eyeing the derivatives market for so-called manufactured credit events, when funds entice companies to miss bond payments they could otherwise make. Even the Pope has linked the swaps to “extremely immoral actions.”“Once a company gets close to a credit event, CDS protection buyers have a serious incentive to make sure the swaps get triggered,” said Mahesh Bhimalingam, senior European credit strategist at Bloomberg Intelligence. “It can encourage some activity that feels like abuse of power or market manipulation to outsiders.”Read more: Thomas Cook Rescue Under Challenge From Hedge-Funds PlanSona Asset Management, one of the hedge funds seeking a payout on Thomas Cook swaps, made money on a similar trade earlier this year involving retailer New Look. Sona was able to ensure New Look swaps paid out by buying enough of the U.K. fashion retailer’s bonds to influence its debt restructuring.Asset RulesCredit protection on banks and sovereigns is easier to settle than on companies because those contracts were updated in 2014 to allow them to pay out even after debt is converted into equity or wiped out.Thomas Cook’s case may lead to more pressure for those rules, known as “asset-package delivery” to be applied to corporate CDS.“If only the asset-package delivery rule applied to European corporates as well, there wouldn’t be this problem,” said Soren Willemann, a Barclays Plc credit strategist.A spokesman for the International Swaps and Derivatives Association said that any change to the market’s rules will require “broad industry consensus and agreement.”Chapter 15 protection has triggered CDS payments before, for example on Canadian paper company Tembec Industrials Inc. over a decade ago, according to Neill Keaney, an analyst at CreditSights in London. But the precise level of court protection required by Thomas Cook may be deemed insufficient for a credit event, he said.The Determinations Committee has come in for criticism in the past when traders experienced delays in settling swaps linked to Spanish lender Banco Popular Espanol SA and commodity trader Noble Group Ltd.“If Thomas Cook CDS doesn’t pay out then there will be inevitable questions over the efficacy of the instrument,” Keaney said. “Arguments will arise again over letter of the law versus spirit of the law.”To contact the reporter on this story: Katie Linsell in London at email@example.comTo contact the editors responsible for this story: Vivianne Rodrigues at firstname.lastname@example.org, Chris VellacottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Thomas Cook Group Plc has filed for Chapter 15 court protection in the U.S. as part of a broader debt restructuring for the U.K. travel agent.The company’s Chapter 15 petition was filed in the Southern District of New York, court papers dated Sept. 16 show. Law firm Latham & Watkins is representing the company, according to the documents.Chapter 15 of U.S. bankruptcy law shields foreign companies from lawsuits by U.S. creditors while they reorganize in another country. The filing may also trigger the payout of default insurance on Thomas Cook debt.Read more: Thomas Cook Rescue Under Challenge From Hedge-Funds PlanThe travel agent’s creditors are set to vote on Sept. 27 on a proposed scheme of arrangement, a U.K. court procedure that will allow Chinese investor Fosun Tourism Group to lead a planned rescue of the company.Thomas Cook proposed to swap 1.67 billion pounds ($2.07 billion) of bank debt and bonds for 15% of the equity and at least 81 million pounds of new subordinated notes, which will pay interest with more debt, according to the documents. After the injection of at least 900 million pounds of new money, Fosun will hold 75% of the shares of the tour operator arm and up to 25% of the airline.The case is Thomas Cook Group Plc, 19-12984, U.S. Bankruptcy Court for the Southern District of New York.(Adds restructuring plan details in fifth paragraph)To contact the reporters on this story: Irene García Pérez in London at email@example.com;Katie Linsell in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Vivianne Rodrigues at email@example.com, Luca CasiraghiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Thomas Cook, the UK tour operator, has filed for Chapter 15 bankruptcy protection in the US to safeguard itself against legal action by US debtholders. On Monday, Thomas Cook delayed until next week two crucial hearings in the UK at which creditors will vote on the restructuring, pushing it close to its planned finalisation of the deal in October by which time it will need funds in order to buy hotel capacity for next year’s holiday season. Shares in the 178-year-old tour operator have fallen more than 80 per cent since it announced the sale of its airline in February.
a crucial meeting with its bondholders, originally set for Wednesday this week, partly out of fear that a group of hedge funds will block the deal. It is because they are worried the scheme might not trigger payouts on CDS. Thomas Cook is trying to reorganise its debt in a way that will trigger losses for bondholders.
(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.The U.K. aviation regulator is preparing for a possible collapse of tour operator Thomas Cook Plc ahead of a showdown with bondholders, the Times of London reported, without saying where it got the information.The Civil Aviation Authority is making contingency plans for the possibility of having to repatriate “hundreds of thousands” of passengers stranded abroad, the newspaper said. The regulator’s preparations come ahead of an Oct. 1 deadline for renewal of Thomas Cook’s air travel organizer’s license. The U.K. Civil Aviation Authority was unavailable for comment outside of normal working hours. Thomas Cook declined to comment on a possible delay of the meeting. Thomas Cook is currently trying to secure a more than 1 billion-pound ($1.3 billion) rescue package with lenders and bondholders including Fosun International Ltd. The travel agent may appeal to the courts to push back a bondholder meeting set for Wednesday in order to gain more time to finalize the restructuring agreement, the Financial Times reported without saying where it got the information.Thomas Cook’s bonds fell to record lows on Friday and shares have fallen 84% this year as it seeks a rescue amid wilting profits, falling demand and the impact of Brexit. Last week, a group of hedge funds holding credit insurance on the company was said to challenge the plan in order to ensure they get a payout. Thomas Cook has lined up AlixPartners as an adviser if rescue talks with Fosun and other lenders fall apart.\--With assistance from Niluksi Koswanage.To contact the reporter on this story: Michael Msika in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Blaise Robinson at email@example.com, Stephen Treloar, Andrew DavisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Thomas Cook is set to seek to push back a crucial meeting of bondholders as it races to secure support for a proposed £900m rescue deal that would leave its majority shareholder Fosun and lenders in control of the 178-year-old holiday business. Any deal would need support from three-quarters of its bondholders. The FT has learnt that the company is likely to move to gain more time to conclude negotiations by appealing to a court to push back the meeting of bondholders that had been arranged for Wednesday.
Anyone researching Thomas Cook Group plc (LON:TCG) might want to consider the historical volatility of the share...
(Bloomberg) -- Holders of credit insurance on Thomas Cook Group Plc are drawing up plans to potentially block the U.K. travel agent’s $1.1 billion rescue in order to ensure they get a payout.The group of hedge funds, including Sona Asset Management and XAIA Investment GmbH, may vote against a bailout led by Fosun Tourism Group at a creditor meeting on Sept. 18 if they don’t secure their payment before then, according to people familiar with the plan. Fosun’s rescue includes a debt-for-equity swap that could prevent compensation on their default insurance.The hedge funds are drawing up the plans because they fear the conversion into equity swap that’s central to the restructuring may leave their holdings of credit-default-swaps with no debt to insure. This would prevent a payout in accordance with the contracts.Law firm Fieldfisher LLP is representing them, the people said asking not to be named discussing private information. The investors also bought Thomas Cook bonds entitling them to attend the meeting.Under the rules of schemes of arrangement -- a U.K. court procedure -- the investors will need to hold at least 25% of Thomas Cook’s bonds to influence the debt restructuring. Investors hold about $261 million of swaps on Thomas Cook in total, according to the latest data from the International Swaps & Derivatives Association.Representatives for Fieldfisher, Sona and XAIA declined to comment on the plans.The group has already contacted Thomas Cook’s financial adviser PJT Partners and the bondholders’ legal adviser Milbank, according to the people familiar with the matter.Representatives from PJT and Milbank declined to comment.Thomas Cook declined to comment. As part of the schemes of arrangement, the company may file for Chapter 15 court protection from creditors in the U.S. That could trigger a payout on the default swaps before next week’s bondholder meeting and solve the problem for the insurance holders.Read more: Credit Swaps Flaw Spurs Trade on Thomas Cook Debt RestructuringThe travel company sought its rescue amid wilting profits as its core north-European customers vacationed at home during successive summer heatwaves. Uncertainty over the economic impact of Brexit has also weighed on demand.Sona has successfully steered a similar maneuver in the past. The London-based fund ensured payouts on New Look Retail Group Ltd.’s swaps earlier this year by buying enough of the U.K. fashion retailer’s bonds to influence its debt restructuring.To contact the reporter on this story: Katie Linsell in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Vivianne Rodrigues at email@example.com, Chris VellacottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
The high season for holidays is drawing to a close in Europe. And that spells trouble for ailing travel firm Thomas Cook. The historic company - a pioneer of the package tour - had thought a rescue deal was all sorted. Last month it agreed a 1.1 billion dollar recapitalisation plan with banks, bondholders and China's Fosun Tourism. But now that may not be enough. Thomas Cook's lenders want to see another 250 million dollars. That's to tide it through the winter months, when cash flow slows. Shares in the firm fell by more than a quarter following the news, sinking to little more than three pence - about 4 U.S. cents. Thomas Cook has struggled with growing competition and high debts. In 2018 an exceptionally hot summer also hit last-minute bookings. Now it's in talks to find the extra cash. Many holidaymakers will be anxiously awaiting news on its fate. About 600,000 people are currently on Thomas Cook trips.