Thomas Cook Group secures GBP450m in funding from Fosun for recapitalisation plan

    Thomas Cook Group announced (28-Aug-2019) the group’s largest shareholder, Fosun Tourism Group, its affiliates and Thomas Cook‘s core lending banks have agreed to a substantial new capital investment as part of a recapitalisation and separation of the group. Details include:

    • Fosun to contribute GBP450 million of new money to the group and acquire at least 75% of the equity of the group tour operator (subject to the receipt of anti-trust approvals) and 25% of the group airline;
    • The group’s core lending banks and noteholders targeting in aggregate GBP450 million of new money to the group and converting their existing debt into approximately 75% of the equity of the group airline and up to 25% of new equity in the group tour operator;
    • Implementation commitment targeted for early Oct-2019.

    Reflecting the extensive progress made on agreeing key commercial terms with the group’s core lending banks and noteholders regarding the injection of GBP450 million of new money into the business, the mandate letter and term sheet for a GBP300 million secured bank financing facility announced in May-2019 will also be allowed to lapse. [more – original PR]