Thomas Cook files for Chapter 15 bankruptcy protection

Tuesday, 17 Sep, 2019 0

Thomas Cook Group has filed for Chapter 15 court protection in the US, the next step in its rescue deal plans.

The filing protects Thomas Cook from legal action from US creditors while it goes through a reorganisation.

It also triggers the payout of default insurance for bondholders who may block the deal.

Thomas Cook needs to secure support from 75% of its bondholders for the rescue deal to be approved, but, according to reports first circulated in the FT, some hedge funds are set to vote against the recapitalisation, which would see existing shareholders’ interests significantly diluted.

Disgruntled bondholders are pushing for the deal to be restructured to allow credit default swaps (CDS) on their loans, which act as an insurance that pays out if the bonds become worthless.

Thomas Cook has postponed this week’s scheduled creditors’ vote on its planned takeover by Fosun until September 27 to give it more time to secure a deal.

Bev

Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.

Local spices spike the fragrant air of Morocco. Cradled by the dunes of the Sahara, the Kingdom has been inhabited...

The Polish Tourism Organisation (Polska Organizacja Turystyczna – POT) is one of several dozen national tourism organisations operating in the...

Discover Sarawak Revealing a side of Asia unlike anywhere else, Sarawak offers an alternative for those seeking humble authenticity far...

Holiday Extras is the UK market leader in airport parking, airport hotels, worldwide airport lounges, destination car hire, airport transfers...

Chargebacks911 offers scalable solutions that are customized for any business of any size in any industry. With the flexibility to...

The superpower in bed banks for 30 years We are an award-winning and trusted accommodation wholesaler since 1991. We are...

WANDERERS WELCOME to MISSISSIPPI Mississippi is a state for all those who are wanderers at heart. From lush, forested Appalachian foothills to...

City Cruises is a leading operator of sightseeing, dining and charter services operating in London, York and Poole. We offer...

Palladium Hotel Group is a renowned Spanish hotel chain that first emerged towards the end of the 1960s. Currently present...

Welcome to Qatar Airways Qatar Airways is proud to be one of the youngest global airlines to serve all...

If you’re thinking of cruising, there’s a very good chance you’re considering a Carnival cruise. Growing since our founding in...

MGM Resorts International (NYSE: MGM) is an S&P 500® global entertainment company with national and international locations featuring best-in-class hotels...

The Mexico Tourism Board serves as the driving force behind Mexico’s global appeal, orchestrating targeted marketing campaigns to showcase the...

We are a small-group adventure travel operator offering more than 750 tours in 100 countries, on all seven continents. Our...

Our leadership is bold. Our agility thrives on open innovation and we embrace the new, whether it’s diversity, trends, challenges....

Hilton is a leading global hospitality company with a portfolio of 22 world-class brands comprising nearly 7,300 properties and more than 1.1 million rooms, in...

Blue Diamond Resorts consistently goes above and beyond guest expectations by delivering groundbreaking vacation experiences through our exceptional collection of...

We work with reliable data providers with global coverage, that guarantee data representativeness as well as compliance with International Personal...