Thomas Cook in talks with UK Govt. & investors over a rescue deal

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Thomas Cook in talks with UK Govt. & investors over a rescue deal

London-based tourism industry conglomerate, Thomas Cook Group Plc. had been in talks with the British Government of newly elected PM Johnson alongside potential investors to board off an eleventh-hour rescue deal to defend a possible corporate collapse in near-term outlook, which had every potentiality to impact markets well-beyond the travel industries, analysts suggested.

In point of fact, the grief-sickened British tourism titan had been wrestling over the recent week following repeated threats from large lenders that they might call the rescue deal off. Apart from that, the debt-laden Thomas Cook had been scuffling to grapple with an intense competition from entirely online-based rivals alongside geopolitical hobbles, while the British tourism group must secure as little as £200 million aside from a £900 million package it had already agreed to see off the winter when the tourism company would be requiring to pay off hotels and other rental services for its summer services.

More critically, amid a rough rumbling of global slowdown risk, Thomas Cook’s 20,000 employees would be at risk, should the company collapse, said industry analysts. Nonetheless, an insider familiar with the situation had unveiled on Saturday (September 11th) that the company was holding talks with British Govt.

and potential investors in a bid to bridge its funding gaps. Besides, Thomas Cook’s management board was scheduled to hold a board meeting over this weekend aimed at assessing the company’s stance on fund raising, sources said.