Thomas Cook has been granted more time to finalise the terms of a £1 billion rescue deal led by Chinese travel giant Fosun.
Talks to determine the future of Britiain’s oldest travel company had been due to take place on Wednesday (18 September) following months of negotiations with Fosun over the terms of the deal.
However, Cook confirmed on Monday (16 September) meetings and hearings pertaining to the company’s proposed recapitalisation, and a vote on the proposals, have been pushed back to 27 September and 30 September respectively.
Cook added it was still hopeful of implementing the recapitalisation “in early October”, in line with its estimate from late August.
It comes after it was last Thursday (12 September) reported Cook was seeking an additional £100 million cash headroom to tide it over until the deal gets over the line.
Cook declined to comment on the speculation and further reports in the business press around its future over the weekend, but stressed in a statement negotiations with Fosun were ongoing.
“We remain focused on completing the transaction," said Cook.
Cook came to terms with Fosun, the company’s largest shareholder with an 18% stake, over a £900 million rescue deal last month, which would see the operator divided up.
Fosun would inject £450 million fresh funding and take a majority stake in Cook’s tour operator and a minority stake in its group airline.
A further £450 million would be put up by Cook’s lenders to secure a majority stake in the airline and a minority stake in the tour operator.
The cost of the rescue deal though has spiralled from around £750 million in July to in excess of £1 billion.
Cook is due to renew its Atol on 1 October, which will set out its capacity for the winter and the full 12 months through October 2020.