The Times reports that in a High Court witness statement, former chief executive Peter Fankhauser lists liabilities including £1.9 billion of debt and guarantees to organisations including the CAA, bonding providers and payment service providers.

Fankhauser’s statement concluded that: “Accordingly the company has a balance sheet deficiency of in excess of £3.1 billion”.

Sounding the death knell for the brand, he added: “In simple terms the company will run out of cash by 4 October”. He confirmed “the absence of funding” was one of the main reasons the board opted for liquidation rather than administration – which can allow profitable parts of companies to be sold off.

The watchdog Financial Reporting Council has confirmed it will examine whether there is a case to answer about the level of debt Thomas Cook accumulated and the conduct of its former directors.

An FRC spokesperson said: “In light of recent developments at Thomas Cook we are considering whether there is any case for investigation and enforcement action as a matter of urgency and in cooperation with the Insolvency Service.”

The cost of repatriation of Cook’s clients is mounting as the CAA revealed 40% are not covered by Atol, with taxpayers likely having to fork out £40 million to bring them home. The Times adds that £388 million is owed to hotels and £272 million to other suppliers.

Meanwhile, Thomas Cook’s German airline Condor has been granted a lifeline for the next six months by the German government while it seeks a buyer, with Lufthansa Group likely to be among the bidders.