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Thomas Cook is in talks with his banks for a GBP 400 million loan to avert the threat of tight liquidity, which could affect the tour operator next winter.
It is believed that the company is in the advanced stages of negotiations with its banking syndicate after asking lenders for a new revolving credit facility to help strengthen its balance sheet.
He hopes to obtain this funding before announcing his half-year results on May 16, when his auditor Ernst & Young could otherwise be compelled to express doubts about his ability to continue his activities.
The discussions, first reported by Sky News, are intended to provide the company with financial flexibility for the winter period, when tour operators' cash reserves run out, as holidaymakers generally reserve more early in the year.
A delay in the Brexit calendar, now scheduled for October, helped the company by avoiding any disruption during this key period for summer bookings.
But Thomas Cook remains under the pressure of long-term trends that affect traditional tour operators, who own expensive traditional stores, despite the tendency of vacationers to book online.
In a statement to the stock market, Thomas Cook said: "With regard to the winter of 2019-2020, we have taken the initiative to dialogue with our lending banks to ensure we have the necessary financial flexibility to maintain adequate liquidity. winter, but also the ability to continue to invest in our growth strategy. "
Peter Fankhauser, Chief Executive Officer, said: "We have taken a number of early and prudent steps to reduce the risks of our business by removing capacity in a challenging consumer environment.
"We have also taken the initiative to reach out to our financial partners and engage in constructive discussions to ensure we have the flexibility and resources to continue investing in our long-term plans."
The price of Thomas Cook's bonds fell sharply this week as investors discharged their debt, raising concerns that the company could not pay it back.
Thomas Cook's financial situation is complicated by uncertainty over the timing and success of the sales plans of his airline division.
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