Sep 17, 2019
Thomas Cook files for US bankruptcy protection
Thomas Cook, the UK tour operator, has filed for Chapter 15 bankruptcy protection in the US to safeguard itself against legal action by US debtholders. On Monday, Thomas Cook delayed until next week two crucial hearings in the UK at which creditors will vote on the restructuring, pushing it close to its planned finalisation of the deal in October by which time it will need funds in order to buy hotel capacity for next year's holiday season. The rescue deal will see £450m of capital put forward by Thomas Cook's largest shareholder, the Chinese conglomerate Fosun, in return for control of 75 per cent of the group's tour operator business and up to 25 per cent of its airline. Fosun, which also owns Club Med and Wolverhampton Wanderers, the Premier League football club, currently owns 18 per cent of Thomas Cook. The US bankruptcy filing should trigger payouts on the CDS but due to the technical wording of the filing - it did not explicitly state that the company is insolvent - they are not guaranteed.
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