Thomas Cook’s volatile share price sank even lower today following news that the troubled tour operator is seeking a further £150 million to see it through the winter.
Shares in the company fell 25% yesterday following the announcement, and this morning they slipped by almost 10% more to 7.1p.
The highest the shares have reached so far this month is 12.3p following news that Turkish travel tycoon Neset Kockar had bought a 6.7% in the business. He later increased this to 8%.
Yesterday Thomas Cook dismissed rumours in the Turkish media that Kockar was planning to take over the business.
Instead, it said it was in discussions with bondholders for an additional £150 million, on top of a proposed £750 million cash injection, £450 million of which will come from its largest shareholder, Chinese investor Fosun, and the remainder from its existing bankers.
"The recapitalisation proposal remains subject to certain conditions including performance conditions, due diligence, further discussions and reaching agreement with a range of company stakeholders (including the pension trustees, noteholders, other financial creditors and Fosun’s shareholder approval), and receipt of any regulatory and anti-trust clearances or approvals," the company said in a statement to the London Stock Exchange yesterday.
