Thomas Cook shares collapse 66 percent as uncertainty strain the tour firm but the Swedish division remains buoyantTuesday, 22 November 2011
Shares of the British travel group Thomas Cook, which owns Ving Sweden and Globetrotter, plummeted by 66 percent on the London Stock Exchange on Tuesday.
The collapse follows that of Thomas Cook which suspended the accounts of a financial statement and announced that it entered into negotiations with lenders for an emergency loan of 100 million pounds (Skr1.1 billion), which should come after a deal as big a new credit facility in October .
AdvertisementStock market collapse for the wing-owner, Thomas Cook's shares on the London Stock Exchange picked up during the morning. Shortly after ten o'clock its shares had lost 74 percent of its value.
Swedish Wing says it is not affected at all by the problems in the parent company, Thomas Cook.
Thomas Cook announced that as a result of deterioration of trading in some areas of the business in the current quarter, and of its cash and liquidity position since its year end, the Company is in discussions with its principal lending banks with regard to its facilities during the seasonal low period of cash in the business.
While the Company currently remains in compliance with its financing covenants, it also intends to seek agreement from its lending banks to adjustments that will improve its resilience if trading conditions remain difficult.
“Operations in the rest of the group is a little worse as a result of the particular situation in North Africa. As a result, one sees that it needs additional funding. I can not see that it affects us in some degree,” says Lars Lofgren, CEO of Thomas Cook Northern Europe.
He points out that the Nordic operations went "exceptionally well" for several years and feel no anxiety for bankruptcy.
“We have been the group's star for many years. We learn to live on almost any other medium.”
He points out that he has great confidence that the parent company will succeed in solving its problems.
Customers need not be afraid of losing money. If the tour operator goes bankrupt, the travel guarantee kicks in.
By Scancomark.se Team
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