Thomas Cook in talks with potential lenders to reinforce finance

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Thomas Cook in talks with potential lenders to reinforce finance

The debt-drowned British travel company, Thomas Cook AG, headquartered in London, said on Friday, the 2nd of May 2019, that the company had been in talks with multiple potential lenders about reinvigorating its finances. Latest statement from the heavily indebted British travel company came forth amid an ongoing media speculation about the travel company’s ability to reimburse its debts.

Nevertheless, in order to achieve profitability by axing its loss-making ventures, the British company had put its long-time favorite airline business up for sale on last February, and, followed by its latest attempt to trim costs, the company had been experiencing tumultuous periods for the last couple of months, while its share price were plummeted as much as 34 percent this year.

According to a Sky News report aired on Friday, the company had been in advanced talk for some 400 million pounds as new loans, however, followed by the release of the report, Thomas Cook had lost more than 18 percent of its market capitalization, as investors became worried on whether the loss-making company would be able to refund its new loans amid a stockpile of unpaid debts.

Nevertheless, expressing through-and-through optimisms over the company’s long-term outlook, its Chief Executive, Peter Fankhauser said, “We have (...) taken the proactive step to approach our financing partners and are engaged in constructive discussions to ensure we have the flexibility and resources to continue investing behind our plans over the long-term”.