Sep 26, 2019

Thomas Cook lenders face £1.8bn writedown

Banks including Barclays, Morgan Stanley, UniCredit, Credit Suisse and Royal Bank of Scotland are facing writedowns of up to £1.8bn from the failure of Thomas Cook. "The collapse of Thomas Cook has uncovered what appears to be a sorry tale of corporate greed, raising serious questions about the actions of Thomas Cook's bosses and their stewardship of the business," said Rachel Reeves, chair of the committee. Norway's biggest bank, DNB, which took a NKr1bn writedown relating to Thomas Cook this week, and UniCredit were two of the larger lenders to the travel group's revolving credit facility. Alongside a majority of bondholders, the banks had been prepared to see their debts converted into £450m of equity in the tour and airline businesses - but Thomas Cook then struggled to meet a request for an additional £200m in equity from some of the banks. LMEY, a real estate company that launched a £150m hotel fund in a joint venture with Thomas Cook in 2018, said it was looking to buy out Thomas Cook's 42 per cent stake.

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