Thomas Cook to unveil restructuring plans

Thomas Cook to unveil restructuring plans

Thomas Cook is being tipped for a major restructuring of its UK operation once it secures financial backing from one of its banks, which is expected to be confirmed later today.

An announcement is expected to be made later today that the group has secured the £100 million it needs to get its business back on track.

As the positive rumours are emerging that the Thomas Cook may secure the funds it needs, the company shares - which plummeted to 10.2pon Tuesday - are up to 4.85p today at 21.2p.

The tour operator, which is 170 years old, admitted earlier this week that its business had slumped because of the tough worldwide climate - including political unrest in Egypt and flooding in Thailand.

Thomas Cook, which lost its chief executive Manny Fontena-Novoa earlier this year – said it said that “as a result of deterioration of trading in some areas of the business in the current quarter, and of its cash and liquidity position since its year end, the company is in discussions with its principal lending banks with regard to its facilities during the seasonal low period of cash in the business.”

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It has delayed releasing its end of year financial results until it completes discussions with the banks.

The group will not reveal details of the UK restructuring until shareholders have been informed.