Breaking Travel News

Prospect of banking deal sees Thomas Cook shares rise

Prospect of banking deal sees Thomas Cook shares rise

Thomas Cook has confirmed it is in “advanced discussions” with its banking group about extending its financing arrangements.

The news saw shares in the beleaguered tour operator rise sharply this morning – up 12 per cent to 23 pence a share.

“These discussions are part of the result of the strategic review the group has undertaken since agreeing terms of a new facility in November 2011,” Thomas Cook said in a statement to markets.

“The group expects to report in more detail on the results of that review by the time of the interim results.”

Thomas Cook also confirmed it was exploring a possible sale and leaseback of certain aircraft.

This is in addition to the previously announced asset disposal programme and the sale of Thomas Cook India.

The second-biggest travel company in Europe suffered a disastrous year in 2011, leading to the resignation of its chief executive Manny Fontenla-Novoa.

The closure of up to 200 stores, with the loss of 1,000 jobs, has already been confirmed, as Thomas Cook battles to turn around its UK business.