Thomas Cook Inks Deal with Bankers for New £200 Million Credit Facility

Thomas Cook Inks Deal with Bankers for New £200 Million Credit Facility

Travel firm Thomas Cook has reached agreement with its bankers to provide it with new access to funding. Shares in the company fell 75 percent on Tuesday after it said it was in talks about increasing borrowings.

It said weak consumer confidence due to political unrest in Egypt and Tunisia and floods in Thailand had hit sales. Its bankers, including Barclays, HSBC, RBS and UniCredit, have agreed to provide a new £200m facility until 30 April 2013. The new deal replaces the £100m short-term credit agreement announced on 21 October 2011.

At the end of September the firm's net debt was just under £900m. The new loan will take the figure to over £1bn. The company has stressed that it is not currently in breach of the terms of any of its loans, and said it wanted the new loans to "improve its resilience if trading conditions remain difficult".