Wednesday, May 30, 2012

Thomas Cook sees losses widen as it struggles with debt

Thomas Cook

Thomas Cook has seen its half-year losses increase sharply after a "difficult" six months, but says it is taking "decisive action" to improve its position.

The travel group reported a pre-tax loss of £713m in the half year to 31 March, up from a £269m loss last year.

The company has struggled with high debt levels and the wider downturn in the global travel sector.

Earlier this month, Thomas Cook secured a £1.4bn refinancing package.

This deal gives the company a further three years to repay its debts.

Thomas Cook also secured shareholder approval earlier this week to sell its investments in a Spanish hotel business, and backing for the sale and leaseback of some of its aircraft. The company said on Thursday that when taken together these moves would add £239m to its finances.

The firm has also agreed to sell its Indian business for £94m.



Source & Image : BBC

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