Thomas Cook Group has agreed a new £1.4 billion financing package with its lenders which will give the travel group longer to turn around its business.

The new agreement, which follows the conclusion of a strategic review following profit warnings, extends the maturity of its financing until May 31, 2015 from previous expiry dates between 2013 and 2014.

The deal also includes no fixed repayments and will enable Thomas Cook to retain net proceeds from certain disposals to provide greater financial flexibility.

Sam Weihagen, Group Chief Executive Officer of Thomas Cook Group commented:  “Today’s announcement highlights the confidence our lenders have in Thomas Cook and we are delighted that they have demonstrated their on-going support.

He added:” We continue to make good progress in strengthening the Group’s financial position, and our disposal plans, including an aircraft sale and leaseback, are proceeding well. These actions are an important step in the journey to strengthen confidence and ensure that the Thomas Cook Group will continue to provide customers with wonderful travel experiences for years to come.”

Frank Meysman, Group Chairman of Thomas Cook Group commented:  “I would like to personally thank Sam Weihagen, Paul Hollingworth and the team for the actions that they have taken and continue to take to strengthen the Group’s financial position. This bank agreement, together with these actions, places Thomas Cook on a much firmer footing. The search for a long-term Group CEO is progressing well. ”