|Bid||4.6050 x 0|
|Ask||4.7500 x 0|
|Day's Range||4.4000 - 5.0000|
|52 Week Range||4.3000 - 80.1500|
|Beta (3Y Monthly)||0.55|
|PE Ratio (TTM)||N/A|
|Earnings Date||Nov 25, 2019 - Nov 29, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||49.49|
Thomas Cook’s management team is facing a new challenge in its battle to save the 178-year-old travel group: credit default swaps. a crucial meeting with its bondholders, originally set for tomorrow, 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.
(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 email@example.comTo contact the editors responsible for this story: Blaise Robinson at firstname.lastname@example.org, 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 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.
Jim Pickard and Robert Shrimsley reference research showing that “one in four people want nationalised travel agents” (“ Rewriting the rules ”, The Big Read, September 2). We have been there before. From ...
British Prime Minister Boris Johnson provoked a constitutional uproar on Wednesday when he announced plans to suspend Britain's parliament for more than a month before Brexit, daring opponents of his Brexit strategy to vote down his government. Apple Inc said on Wednesday it had failed to adhere by its own privacy ideals when it hired contractors to listen to customers' audio recordings of its voice assistant Siri and issued new policies to protect user privacy. British travel operator Thomas Cook Group Plc said on Wednesday it had agreed to key terms of a rescue deal with China's ! and its debtholders that aims to save the debt-ridden group.
Thomas Cook has moved a step closer to securing its future after reaching a “substantial agreement” over a proposed rescue deal with shareholder Fosun Tourism Group and its creditors. The terms of the deal will see Fosun invest $549 million (£450 million), acquiring at least 75 percent of the equity of the tour operator — […]
British travel operator Thomas Cook Group said on Wednesday it had agreed the main terms of a rescue package that will see China's Fosun Tourism take over its tour operations and creditor banks and bondholders acquire its airline. Thomas Cook also said in July that it was working to secure new investment from shareholder Fosun Tourism which would see the Chinese group take control of the business, along with Thomas Cook's lenders whose debt would be converted into equity. The terms announced on Wednesday will see Fosun - whose Chinese parent owns all-inclusive holiday firm Club Med - contribute 450 million pounds ($552 million) of new money in return for at least 75% of the tour operator business and 25% of the group's airline.
(Bloomberg Opinion) -- Thomas Cook Group Plc’s rescue by Fosun Tourism Group moved a step closer on Wednesday as creditors approved a 900 million-pound ($1.1 billion) bailout led by the Chinese investor.The ailing British travel company’s shareholders could be forgiven for thinking they have got the loungers on the shady side of the pool.Under the terms of the deal, Fosun will own 75% of the tour operator and 25% of the airline, in accordance with European Union rules requiring airlines to be majority-owned by European investors. Creditors will own 25% of the tour operator and 75% of the airline.This deal isn’t quite done yet – completion is targeted for October. But it should be sufficient to see Thomas Cook through the low winter season. That should reassure customers and prevent any further slide in trading.What’s more, unlike other attempts to strengthen the company’s finances, this one doesn’t rely on the sale of the airline. The banks and bondholders may not be long-term owners of a majority stake in the group’s airline, but a sale isn’t needed right now to support this recapitalization.The company’s 750 million euros of 6.25% bonds due in 2022 rose as much as 48% on Wednesday, before paring that gain. The shares fell 18% to 5.8 pence.That’s a sign there will be little left for stockholders, who have seen their shares slump by 93% over the past year. Thomas Cook said it intends to maintain a listing, but it acknowledged that the recapitalization may lead to it being de-listed.Shareholders may be able to invest alongside Fosun and lenders. Given that they are likely to see their existing holdings wiped out, it’s hard to see much appetite for more exposure.The recapitalized Thomas Cook will still face competition from Germany’s TUI AG, which has the advantage of also owning hotels and cruise ships, as well as a stronger balance sheet. Thomas Cook must also continue to navigate turbulence from Britain’s exit from the European Union and the knock-on effects on the both sterling and the U.K. consumer.Fosun’s long game seems to have paid off here. It will get control over Thomas Cook’s prize asset, the travel agency, and a minority stake in its airline – without having to pay a premium to shareholders.To contact the author of this story: Andrea Felsted at email@example.comTo contact the editor responsible for this story: Edward Evans 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) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Debt-laden U.K. travel giant Thomas Cook Group Plc secured the backing of its lending banks and bondholders for a 900 million-pound ($1.1 billion) bailout led by Chinese investor Fosun Tourism Group.Fosun will provide half of the total in return for control of Cook’s tour-operator arm and a stake in its airline, the London-based holiday firm said Wednesday. Banks and noteholders will contribute the rest, while converting their existing debt into stock.The bailout, first announced in July, provides stability for Cook as it prepares for the coming winter low season, when tour operator profits are traditionally squeezed. The bonds surged, while the shares, which will be significantly diluted, declined as much as 18%.For Fosun Tourism, listed separately from its parent since December, the transaction marks the acquisition of its second sizable tourism asset in Europe, after the purchase of iconic French resort company Club Mediterranee in 2015.The deal will leave Fosun holding at least 75% of Cook’s main holiday business and around 25% of its airline division. Lenders will get the rest of the airline and up to 25% of the tour business.Other investors may be given the opportunity to participate in the recapitalization, while Cook also said for the first time that the main Plc -- which will become a shell with few assets -- could ultimately be de-listed.Thomas Cook’s 750 million euros ($831 million) of bonds due 2022 rose as much as 48% on the euro to 30.4 cents, the highest in three weeks, according to Bloomberg data. The stock fell 15% to trade at 6 pence as of 9:07 a.m. in London.Margins at Thomas Cook have been shrinking amid a sluggish European vacation market as more people holiday at home following successive summer heatwaves. Uncertainty over the economic impact of Brexit has also weighed on demand, leading the company to predict a lower second-half operating profit.The transaction leaves the way open for a possible sale of Cook’s airline arm. The company earlier sought a buyer for the business, which includes Germany’s Condor and operates about 100 jets. As a non-European entity, Fosun cannot own a majority stake in the carrier without losing traffic rights.The recapitalization remains slated for completion in early October, subject to antitrust approval and a legally-binding accord between the parties. Cook will launch inter-conditional creditor schemes of arrangement seeking consent to amend terms of its 2022 and 2023 notes and a 2017 revolving credit.(Updates with Fosun expansion from fourth paragraph.)\--With assistance from Shirley Zhao.To contact the reporters on this story: Richard Weiss in Frankfurt at email@example.com;Luca Casiraghi in London at firstname.lastname@example.orgTo contact the editors responsible for this story: Sam Nagarajan at email@example.com, ;Anthony Palazzo at firstname.lastname@example.org, Christopher JasperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
It was only a couple of years ago that Australia-based travel company Webjet made a tiny proportion of its profit from business-to-business sales, but in just a short space of time its WebBeds unit has grown to become the number two global player, contributing $46 million in profit (EBITDA). This means that WebBeds is now […]
The extra cash will provide further liquidity through the coming 2019-20 winter cash low period, Thomas Cook said. In July, Fosun and Thomas Cook began negotiating a 750 million pound ($903.45 million) rescue that would give the Chinese conglomerate control of the indebted British group's package-tour business. On Monday, Thomas Cook said it had made significant progress towards finalising the key terms of the recapitalisation with Fosun, lending banks and noteholders.