The travel giant Thomas Cook can not find private funds to avoid a collapse: source



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The famous British travel agency Thomas Cook has failed to find other private investments to avoid collapse and is now relying on an unlikely government bailout, announced Saturday to AFP a source close to the file.

The operator said Friday it needed £ 200m (US $ 250m, € 227m), in addition to the £ 900m bailout agreement last month, or Administration would risk causing Britain's largest repatriation since the Second World War. II.

A source close to the negotiations told AFP that the company had failed to find the 200 million pounds of private investors and would collapse unless the government n & # 39; 39; intervene.

Ministers are reluctant to intervene, worried about the long-term viability of the pioneering operator, the Times reported on Saturday, leaving the country on the verge of collapsing and blocking up to 150,000 British holidaymakers abroad.

"We will know tomorrow if an agreement is found," the source told AFP.

Two years ago, the collapse of Monarch Airlines prompted the UK government to take urgent action to return 110,000 stranded passengers, costing taxpayers around £ 60m for Hiring aircraft.

The government of the day described this as the "greatest repatriation of all times in peacetime in Britain".

Thousands of workers could also lose their jobs. The 178-year-old company employs around 22,000 people worldwide, including 9,000 in Britain.

The Chinese group Fosun, which was already the largest shareholder of Thomas Cook, agreed last month to inject 450 million pounds sterling.

In return, the conglomerate listed in Hong Kong acquired a 75% stake in Thomas Cook's tourism business division and 25% of its air transport unit.

Creditors and banks agreed to inject an additional £ 450 million under the recapitalization plan announced in August, converting their debt in exchange for a 75% stake in the airline and 25 % of the tourist operation unit.

Thomas Cook revealed in May that losses in the first half were deepening after a significant write-down, in part due to Brexit-related uncertainty that delayed bookings for the summer holidays. The group, which has about 600 stores across the UK, has also been under pressure from fierce online competition.

© 2019 AFP

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