Update on proposed recapitalisation plan for Thomas Cook at £ 900 million

Α Decrease font Enlarge font
Update on proposed recapitalisation plan for Thomas Cook at £ 900 millionFosun contributing £450 million of new money to the Group while the Group’s core lending banks and noteholders targeting in aggregate £450 million of new money to the Group

Thomas Cook Group plc ("the Company" or "the Group") announced substantial agreement regarding key commercial terms between the Company, Fosun Tourism Group and its affiliates (“Fosun”), the Company’s core lending banks and a majority of the Company’s 2022 and 2023 senior noteholders. Implementation of the proposed recapitalization will involve significant new capital investment and reorganization of the Group.

Key commercial terms and next steps include:      

  • Fosun contributing £450 million of new money to the Group and acquiring at least 75% of the equity of the Group Tour Operator (subject to the receipt of anti-trust approvals) and 25% of the Group Airline;
  • The Group’s core lending banks and noteholders targeting in aggregate £450 million of new money to the Group and converting their existing debt into approximately 75% of the equity of the Group Airline and up to 25% of new equity in the Group Tour Operator;
  • Implementation commitment targeted for early October 2019.

The execution of the transaction remains subject to a legally-binding agreement being reached amongst the parties to the recapitalization plan and, where appropriate, the Group’s other key stakeholders. The proposed recapitalization plan does not impact trade creditors or customers.

In its announcement of 12 July 2019, Thomas Cook stated that shareholders may be given the opportunity to participate in the recapitalization by way of investment alongside Fosun and converting senior creditors on terms to be agreed. The Board continues to proceed on the basis that a recapitalization, achieved with the support of shareholders, is the preferred means of securing the future of the Group for all its stakeholders (including customers, suppliers, and employees), while at the same time enabling the existing shareholders to continue to retain an investment in the Company. However, the recapitalization is expected to result in existing shareholders’ interests in the recapitalized and reorganized Group Airline being significantly diluted, subject to feedback from creditors, the new money providers, and other stakeholders.

In order to obtain the necessary creditor consents to the proposed transaction, the Group will today launch three inter-conditional creditor schemes of arrangement of Group borrower companies to seek creditor consent to amend certain terms of the 2022 and 2023 senior notes indentures (the “Notes”) and the 2017 revolving credit facility (the “RCF Agreement”).

The key objectives of the amendments being sought pursuant to the schemes are to amend the consent thresholds to amend material provisions in the RCF Agreement and the Notes, including in respect of releases of relevant principal debt and/or subsidiary guarantees, and to make certain other technical amendments to facilitate the implementation of the proposed transaction.

The proposed recapitalisation remains subject to certain matters, including credit approvals, investment approvals, agreement on Group performance conditions, due diligence, agreement as to risk allocation amongst Fosun and Group creditors with respect to the bridge financing during transaction implementation, agreement between Fosun and the Group’s core lending banks and noteholders on the separation of the Group into Airline and Tour Operator and timely execution of the separation, reaching agreement with a range of the Company's stakeholders (including fuel and foreign exchange hedging counterparties, the pension fund trustees, noteholders, other financial creditors and approval of Fosun's shareholders), licence renewals and receipt of regulatory and anti-trust clearances and approvals.

The current intention of the Board is to maintain the Company’s listing. However, the implementation of the proposed recapitalization may, in certain circumstances, result in the cancellation of the Company’s listing.

Reflecting the extensive progress made on agreeing key commercial terms with the Group’s core lending banks and noteholders regarding the injection of £450 million of new money into the business in connection with the proposed recapitalisation, the mandate letter and term sheet for a £300 million secured bank financing facility announced in May 2019 will be allowed to lapse.

Given the substantial agreement regarding the commercial terms of the proposed recapitalization, the Company has also agreed on a cost cover arrangement with Fosun, a related party, with respect to the costs and expenses incurred by Fosun with any professional advisors in evaluating and negotiating the proposed recapitalization. The maximum costs to be covered by the Company under this arrangement shall not exceed an amount equal to £5.43 million (less any amounts paid by the Company to Fosun during the past 12 months). The cost cover is payable on a weekly basis beginning 12 July 2019 and ending on 30 September 2019 (with the period accrued to date being paid retrospectively), unless terminated sooner in accordance with its terms and is subject to certain milestones being reached in connection with the proposed transaction. This arrangement falls within Listing Rule 11.1.10R and this announcement is made in accordance with Listing Rule 11.1.10R(c). Arrangements have also been made to meet the reasonable adviser costs of its core lending banks, bondholders, and other appropriate stakeholders in connection with the proposed recapitalization.

About Thomas Cook Group Plc.

Thomas Cook Group plc. is one of the world’s leading leisure travel groups, with sales of £9.6 billion in the year ended 30 September 2018. It is supported by 21,000 employees and has 200 own-brand hotels. It operates from 16 source markets and serves over 22 million customers annually. Thomas Cook Group plc’s shares are listed on the London Stock Exchange (TCG).

RELATED TOPICS: GreeceGreek tourism newsTourism in GreeceGreek islandsHotels in GreeceTravel to GreeceGreek destinationsGreek travel marketGreek tourism statisticsGreek tourism report

 

Tornos
  1. 09/07 01:27

    Greek Finance Ministry projects budget deficit at 7% of GDP

  2. 09/07 00:58

    World Christian Youth Organisation asks Turkey to respect Hagia Sophia status

  3. 08/07 23:30

    President: Chairing Council of Europe 'a unique opportunity for Greece'

  4. 08/07 22:33

    24 unescorted refugee children relocated from the Greek islands to Finland

  5. 08/07 22:22

    Prime Minister: Greece now has a modern, transparent adoption system

  6. 08/07 21:42

    Temporary lifting of mandatory face masks in shopping malls in Greece

  7. 08/07 21:05

    Greek port of Patras signs concession deal for seaplane services

  8. 08/07 20:48

    33 new Covid-19 cases and no fatalities in Greece on Wednesday

  9. 08/07 15:37

    Greek island of Ios in 100 most stunning islands on the planet

  10. 07/07 23:15

    27 new cases reported and zero fatalities from Covid-19 in Greece

  11. 07/07 22:47

    25 unescorted refugee children relocated from Greek islands to Portugal

  12. 07/07 22:19

    IATA Director General's remarks during media briefing on July 7

  13. 07/07 22:15

    Greek Tourism Minister speaks on the phone with his Egyptian counterpart

  14. 07/07 21:53

    Greek exports fell 32.7% in May due to the Covid-19 pandemic

  15. 07/07 21:31

    EC: Greek economy to shrink by 9% in 2020 and rebound 6% in 2021

  16. 07/07 20:36

    Greek PM and President stress that EU Summit must finalize Recovery Fund

  17. 07/07 19:12

    Greek banks extend moratorium of loan payments to December 31, 2020

  18. 07/07 19:06

    Shared determination to restart tourism at UNWTO ministerial meetings

  19. 07/07 17:59

    Prime Minister: Major steps forward in only one year in Greece

  20. 07/07 15:23

    Photo exhibition 'Forts that bind' in city of Chania in Crete

  21. 07/07 15:06

    IATA traveler survey unveils COVID-19 concerns

  22. 07/07 11:58

    Tourism campaign "Destination Greece. Health First" for foreign visitors

  23. 07/07 00:53

    Greek State Minister: Cabinet reshuffle not a government priority

  24. 07/07 00:48

    The stunning Greek island of Skiathos from above

  25. 06/07 23:40

    Main and auxiliary pensions to be paid together in Greece

  26. 06/07 23:35

    First reproduction of flamingos in Greece makes Halkidiki Natura 2000 wetland

  27. 06/07 18:00

    Serbian foreign minister: Closing border hurts Greece's interests

  28. 06/07 17:40

    Development Minister: Hellinikon project a work of national importance

  29. 06/07 15:35

    Government spox: Greece to resume direct flights with the UK from July 15

  30. 06/07 13:31

    Exporters Association: Greece's productive model must and can change

  31. 06/07 13:17

    Long delays at Promachonas border crossing into Greece

  32. 06/07 11:30

    Greek PM to inaugurate three new Athens metro stations on Monday

  33. 06/07 11:26

    New package of support for tourism enterprises in Greece

  34. 06/07 11:08

    Zero deaths and only 9 new Covid-19 cases reported in Greece

  35. 06/07 01:38

    Αssociated Press: UK PM's father defends trip to Greece through Bulgaria

  36. 05/07 23:15

    Greek borders open for 14 more countries as of July 1

  37. 05/07 23:10

    Ban on circulation in hotspots extended in Greece to July 19

  38. 05/07 23:04

    Cyprus announces no quarantine for UK visitors from August 1

  39. 05/07 19:53

    Nine new Covid-19 cases in Greece and no fatality in last 24 hours

  40. 05/07 18:37

    The small Greek island of Donoussa has said no to plastics

  41. 05/07 18:28

    Entrance of Serbian nationals to Greece postponed from July 6 to July 15

  42. 05/07 16:01

    Migration Minister: Decongestion of Greek islands now visible

  43. 05/07 11:32

    Media travel guide: There’s more to Cyprus than the beach

  44. 04/07 22:57

    Agrotourism: An alternative to traditional tourism in island of Crete

  45. 04/07 22:43

    AP: EU cites Cyprus and Greece for allowing travel vouchers, not refunds

  46. 04/07 21:29

    Media report: The Ancient Greek ideals that inspired US Independence (video)

  47. 04/07 20:36

    Greek President sends wishes to American people for Independence Day

  48. 04/07 20:32

    No fatalities and 25 new cases of Covid-19 confirmed in Greece

  49. 04/07 20:23

    Minister Theoharis: Greece has a quality tourism product to offer

  50. 04/07 20:03

    First global Hellenic Medical Teleconference on the coronavirus

  51. 04/07 15:38

    UNWTO and Italy look ahead as official visit marks restart of tourism on Europe

  52. 04/07 13:19

    Gentiloni: Greek economy will prosper with resources of the Recovery Fund

  53. 04/07 11:14

    Weather front with with rain and hail expected in mainland Greece

  54. 04/07 01:05

    Reuters: As tourists return to resorts, Greeks have modest expectations

  55. 04/07 00:43

    Cyprus in UK list of safe countries with no need for quarantine

  56. 04/07 00:21

    Occupany of Greek hotels that have opened remains at May levels of 20%

  57. 03/07 22:09

    Greek president discusses EU's Recovery Fund with Commission VP

  58. 03/07 22:00

    Three new Athens metro stations to be operational as of Tuesday

  59. 03/07 21:29

    No fatalities again and 28 Covid-19 cases registered in Greece on Friday

  60. 03/07 20:28

    ACI and IATA call for governments to pay costs of public health measures

  61. 03/07 18:20

    US embassy marks July 4th with charity, music, and floodlit buildings

  62. 03/07 18:08

    Giorgio Armani and Gino Sorbillo named new special ambassadors for tourism

  63. 03/07 16:57

    Lamda Development CEO: Hellinikon project 'will make all Greeks proud'

  64. 03/07 15:45

    Shipping Minister checks adoption of health protocols at Patras

  65. 03/07 15:35

    UNWTO, Telefonica help destinations use AI to drive tourism's restart

  66. 03/07 13:25

    Greek Prime Minister: €3.5 billion measures to support the economy

  67. 03/07 13:25

    Quarantine measures impede aviation restart in Africa & the Middle East

  68. 03/07 00:43

    New urban plan for fire-ravaged Mati in Attica goes on public consultation

  69. 03/07 00:32

    US Ambassador visits Church NGO with the Greece's Archbishop

  70. 03/07 00:13

    Greece successfully auctioned six-month bonds on Wednesday

  71. 02/07 23:54

    Tourist season opens for the wonderful Greek island of Skiathos

  72. 02/07 22:22

    Greek Development Ministry: Elefsina Shipyards consolidation under way

  73. 02/07 22:04

    E-governance Minister outlines digitization progress in Greece

  74. 02/07 21:41

    President of Hellenic Republic receives head of 'Greece 2021' committee

  75. 02/07 20:32

    Another 28 coronavirus cases confirmed in Greece on Thursday

  76. 02/07 20:04

    21,000 arrivals at Athens International on day Greek airports open to foreign flights

  77. 02/07 19:39

    Greece’s lockdown seeing the coronavirus fast fading away

  78. 02/07 15:26

    Helliniko: The bulldozers are in and demolition work has begun

  79. 02/07 13:57

    U.S. State Secretary urges Turkey to maintain Hagia Sophia’s status

  80. 02/07 13:52

    AHEPA applauds U.S. Ambassador on stance over Aghia Sophia status

  81. 02/07 11:48

    UNWTO members meet to boost cooperation in Asia and the Pacific

  82. 02/07 11:31

    Greece welcomes tourists flying in on fewest flights in decades

  83. 02/07 01:16

    Greece welcomes tourists for first time following Covid-19 lockdown (video)

  84. 02/07 01:04

    Aviation: May passenger demand records slight improvement

  85. 01/07 23:37

    New General Counsel at IATA

  86. 01/07 23:35

    IPTO and Eurobank to finance Crete-Attica grid with €400 million

  87. 01/07 22:44

    Prime Minister: Greece a global example on managing the Covid-19 pandemic

  88. 01/07 22:29

    UNWTO pays official visit to Italy as borders re-open across the Schengen Zone

  89. 01/07 21:59

    Alpha Bank announces deal to sell NPLs portfolio worth €1.1 billion

  90. 01/07 21:40

    International Air Transport Association welcomes ICAO decision on CORSIA

  91. 01/07 19:50

    UNWTO chief: As tourism restarts, our responsibilities remain

  92. 01/07 15:23

    TripAdvisor: Cleanliness most important factor in selecting accommodations

  93. 01/07 14:11

    235 international flights landed on Wednesday at Greek airports

  94. 01/07 01:33

    Framework modernization bill for public outdoor gatherings tabled in Greece

  95. 01/07 01:12

    Tripadvisor survey: Three Greek beaches in Europe’s top-10

  96. 01/07 00:34

    WTTC: European flight bookings show ‘London is falling’

  97. 30/06 22:23

    One coronavirus fatality and 20 new cases in Greece in the last 24 hours

  98. 30/06 21:49

    Government info on travel to Greece after July 1 opening to tourists

  99. 30/06 20:40

    Seajets speedboats to relaunch its routes in Greece on July 3

  100. 30/06 20:30

    Greek operator Celestyal Cruises suspends all voyages until March 2021