Judge gives Thomas Cook go-ahead to proceed with next phase of rescue deal
A High Court judge has given troubled travel firm Thomas Cook the green light to proceed with the next stage of a planned rescue deal.
Thomas Cook bosses said recently that they had substantially agreed the key terms of a rescue deal with Chinese tourism group Fosun.
Mr Justice Norris approved Thomas Cook’s plans for meetings with creditors at a High Court hearing in London on Friday.
The judge said he had not been asked to consider the merits of Thomas Cook’s planned restructure.
He approved arrangements for providing information about the planned deal to creditors after lawyers representing Thomas Cook outlined details of proposed meetings.
Barrister Tom Smith QC, who led Thomas Cook’s legal team, told Mr Justice Norris that the Thomas Cook group had a “net debt position” of around £1.25 billion.
He said the planned Fosun deal would involve an injection of £900 million of “new money”.
Mr Smith said Thomas Cook had suffered because of a “general economic downturn”, declining consumer confidence, increased competition from lower cost rivals, the effects of a heatwave in 2018, “environmental concerns” and the weak performance of sterling.