Thomas Cook waiting for a rescue deal with the Chinese Fosun

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The troubled travel company Thomas Cook is in rescue talks with its largest shareholder, Fosun.

The measures, which have not yet been finalized, would allow the Chinese investor to inject £ 750 million into the company.

Peter Fankhauser, managing director of Thomas Cook, said the proposal was "not the result expected by any of us" but insisted that it was "pragmatic".

The cash injection will give the group enough money to trade and invest until the end of next year.

The tour operator launched a strategic review earlier this year, but since then the European travel market has become "more and more difficult".

This affected the company's finances and made it difficult to sell its airline or travel business to generate revenue.

As a result, the group was forced to enter into talks with Fosun, which will hold a significant majority of the tour operator's tour operator and a significant minority interest in its airline, if the agreement is reached.

& # 39; Solution responsible & # 39;

"After evaluating a wide range of options to reduce our debt and clean up our finances, the board decided to implement a recapitalization plan for the company, backed up by a significant injection of additional funds from our long-standing permanent shareholder. , Fosun and our main lending banks, "said Fankhauser.

"Although this is not the desired outcome of any of our shareholders, this proposal is a pragmatic and responsible solution that provides the means to secure the future of Thomas Cook's business to our customers, our suppliers and our customers. our employees. "

People who currently hold shares in the company would see the value of their investment "significantly diluted" as a result of the proposed transaction.

The plans could even indicate a possible withdrawal of Thomas Cook from the stock market, in order to see the world's oldest package travel company become a private company.

Thomas Cook said that he was facing "intense competition" starting in the second half, accusing an "uncertain customer environment".

The company said it was trying to address these challenges by "putting the emphasis on costs" and "offering customers a stronger holiday offer through high quality hotels with higher margins".