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. 28/01 01:52

    Long-awaited master plan for Athens International Airport greenlighted

  2. 28/01 01:46

    Dispute between Goldair and Trainose erupts over rail market in Greece

  3. 28/01 01:40

    Greek Energy and Finance Ministers to attend Paris investments forum

  4. 28/01 01:32

    Lamda Development buys out Dogus Group for total ownership of Flisvos Marina

  5. 28/01 01:18

    Greece wins Dutch award for best destination in the world for 2020

  6. 28/01 01:11

    Greece has entered final stretch for Hellenikon investment project in Athens

  7. 28/01 00:11

    Greek supermarkets forecast higher sales during first six months of 2020

  8. 27/01 23:59

    UNWTO: Europe can take the lead in tourism and the new Green Deal

  9. 27/01 21:53

    Chinese ambassador in Athens briefs Greek Health Minister on the coronavirus

  10. 27/01 21:04

    Space Tourism: 8 cool destinations that future Mars travelers could explore

  11. 27/01 19:48

    Harvard considers Greek refugee crisis course with University of Athens

  12. 27/01 19:18

    Sea cucumber, a new delicacy once used as bait in Greece

  13. 27/01 17:13

    Omonia square renovation to be concluded in Athens during February

  14. 27/01 13:56

    UNWTO and Fundacion Once highlight accessible tourist destinations

  15. 27/01 11:32

    Greek PM on Holocaust: Humanity must never again experience such a tragedy

  16. 26/01 23:15

    Greek Prime Minister: Our duty is to make the country unrecognisable

  17. 26/01 23:09

    President of Hellenic Republic released from Onasio hospital in Athens

  18. 26/01 23:01

    Greece offers Turkey earthquake aftermath assistance despite tensions

  19. 26/01 22:40

    AP: Lenders commence checkup as Greece seeks lower budget targets

  20. 26/01 19:14

    New Hellenic College and Holy Cross President announces changes

  21. 26/01 16:07

    Health Minister: All measures against coronavirus have been taken in Greece

  22. 26/01 13:55

    Infographic: The hardest cities to afford a home in the world

  23. 26/01 11:42

    Greek Migration Minister: Those not entitled to asylum will be sent back to Turkey

  24. 25/01 22:40

    Greek government eyes fiscal space of €1.5 billion in talks with lenders

  25. 25/01 22:33

    AP: Notre Dame renovation chief says rebuild won’t be rushed

  26. 25/01 22:27

    Greek public sector workers set to strike over pension reform

  27. 25/01 22:24

    Greece and European Investment Bank sign 330-million-euro loan deals

  28. 25/01 22:06

    AP: U.S. imposes visa rules for pregnant women on “birth tourism”

  29. 25/01 21:44

    Greek government spokesman: Migration influx has subsided, both on land and sea

  30. 25/01 17:58

    Ambassador: U.S. has confidence in Greece’s “positive and stabilizing role”

  31. 25/01 13:34

    Hard Rock International responds to Hellenikon project disqualification in Greece

  32. 25/01 11:28

    FitchRatings and Transparency International announce upgrades for Greece

  33. 24/01 23:35

    U.S. Ambassador for religious freedom visits Ecumenical Patriarch Bartholomew

  34. 24/01 23:31

    Greek parliament to vote on Defense Cooperation Agreement with the US

  35. 24/01 23:22

    Foreign Minister: Greece and Saudi Arabia agree Turkey-Libya accords are void

  36. 24/01 23:15

    Tiger Lillies “30th Anniversary Tour” in Greek cities of Athens and Thessaloniki

  37. 24/01 23:06

    Stavros Niarxos Foundation grants aim to revert Brain Drain in Greece

  38. 24/01 23:01

    New re-enforced proportional electoral system passes in Greek parliament

  39. 24/01 22:50

    Contract for Piraeus Port Cruise Pier to be signed in the following weeks

  40. 24/01 22:48

    German Chancellor recognizes implementation of reforms in Greece by PM (video)

  41. 24/01 22:29

    Mitsotakis the most environmentally friendly PM Greece has ever had

  42. 24/01 21:52

    Davos feedback: Foreign investors now view Greece differently

  43. 24/01 20:39

    Greek government eyes €100-billion investments in the next 7-8 years

  44. 24/01 16:57

    Ambassador: 2020 will be a year of significant US investment in Greece

  45. 24/01 15:48

    Property rates grow by 8% and rents by 10% on average across Greece

  46. 24/01 14:06

    Athens Fashion Film Festival 2020 in Gazi Technopolis on February 14-16

  47. 23/01 23:05

    Greek President Pavlopoulos visits Israel to honour Holocaust victims

  48. 23/01 22:57

    Third Greek tennis star progresses to third round at Australian Open

  49. 23/01 22:52

    Brexit is official: Queen gives consent for UK to leave EU on January 31

  50. 23/01 22:35

    Minister Theoharis: Greek tourism to grow despite Thomas Cook collapse

  51. 23/01 22:16

    First Byzantine Monastery on Iberian peninsula found in Spain

  52. 23/01 22:10

    Cyprus President Anastasiades attends 5th Holocaust Forum in Jerusalem

  53. 23/01 20:53

    Surprise discovery of Late Roman era skeletons and robbers baffle researchers of ancient Pafos Agora

  54. 23/01 20:14

    Thessaloniki Tourism Organisation promotes wonderful city in Northern Greece

  55. 23/01 20:06

    Greek state privatization fund: DEPA Commercial appeals to several candidates

  56. 23/01 20:01

    US Secretary of State: Greece a key ally and crucial player in Eastern Med

  57. 23/01 19:50

    Greek Shipowners President: Maritime labour unions need to change

  58. 23/01 19:41

    Medical Tourism: Breakthrough discovery could cure all forms of cancer

  59. 23/01 15:17

    Greek tennis stars Sakkaris and Tsitsipas advance to third round of Australian Open

  60. 23/01 15:14

    President: The Greek State is on the side of the Patriarchate of Jerusalem

  61. 23/01 15:09

    Greek government plans for a 15-year bond issue next week

  62. 23/01 15:06

    New electoral law introduced to Parliament Plenum in Greece

  63. 23/01 14:58

    Greece wins legal battle against top-selling Japanese yogurt claiming to be ”Greek”

  64. 23/01 14:48

    Infographic: New York tops list of U.S. cities with most homeless people

  65. 23/01 12:53

    Prime Minister: Undertaken reforms ensure investment-friendly environment in Greece

  66. 23/01 10:40

    Europe's largest robotics festival Robotex to take place in Athens on April 4-5

  67. 22/01 23:41

    Greek products offered great trade deal with Vietnam under new EU Agreement

  68. 22/01 23:37

    Global Tourism Plastics Iniative tackles one of the worst polluters

  69. 22/01 23:32

    IATA monitors developments on Coronavirus outbreak in Wuhan of China

  70. 22/01 23:27

    US State Department calls on Turkey to cease drilling in Cypriot waters

  71. 22/01 23:26

    King of Spain signals strong support for UNWTO's sustainable tourism goals

  72. 22/01 23:20

    Greek PM to meet top investors and managers at Davos Forum

  73. 22/01 23:05

    Eurostat: Railway security is on the right track in Greece

  74. 22/01 22:58

    Transavia France adds more flights to Rhodes and Kalamata in Greece

  75. 22/01 22:51

    AP report on Spirit Tourism: Britain records rise in visits to distilleries

  76. 22/01 22:41

    MSC Cruises picks Greek port Piraeus for homeporting from 2021

  77. 22/01 22:31

    Greece honored country at 11th Balkan Cheese Festival in Belgrade

  78. 22/01 22:01

    Central Greece Governor's interview: Our Region has it all

  79. 22/01 21:56

    Minister: Debt swap deal between Greek state and National Bank mutually beneficial

  80. 22/01 21:47

    Greek fans cheer on Giannis and Thanasis Antetokoumpo at Barclays Center (videos)

  81. 22/01 20:40

    Prime Minister Mitsotakis presents new draft bill for Greek universities

  82. 22/01 19:57

    Wyndham Hotels & Resorts named best place to work for LGBTQ equality

  83. 22/01 18:32

    Tax-free shipping magnates to renovate and equip public hospitals in Greece

  84. 22/01 17:31

    European Commission Chief: Greece is moving ahead into new era of equality

  85. 22/01 16:12

    Ordination to the Episcopacy of Bishop Elpidios of Kyanea in Sydney

  86. 22/01 14:06

    Greek government and institutions discuss 5th surveillance report on economy

  87. 22/01 12:55

    British Museum may face fine if it doesn't return Parthenon Marbles to Greece

  88. 22/01 10:19

    EU Commissioner for Health and Food Safety to arrive in Athens on Thursday

  89. 22/01 04:14

    New initiative for the return of the Parthenon Sculptures to Greece

  90. 22/01 04:03

    Spectacular photo of Greece's snow-covered Mount Olympus goes viral

  91. 22/01 03:58

    Melina Mercouri honored with commemorative events across Greece in 2020

  92. 22/01 03:53

    Mohegan Gaming Advisors wins casino license in Hellenikon project in Athens

  93. 22/01 03:41

    Greece aims at wider use of electric cars and plans incentives

  94. 22/01 01:35

    Olivier Py directs “Wozzeck” at the Greek National Opera in Athens (video)

  95. 21/01 23:30

    Dodecanesian Federation Taverna Night and Vasilopita Cutting in Astoria, NY

  96. 21/01 22:17

    Minister: Solution for Elefsis shipyards a top priority for Greek government

  97. 21/01 21:25

    National Public Health Organization: Coronavirus risk low among travelers

  98. 21/01 19:15

    Greek Cheese “Arseniko” in EU Protected Designation of Origin products list

  99. 21/01 17:10

    Metropolitan Cathedral of Athens unveils its museum with relics collection

  100. 21/01 17:10

    Greek FM: Defence cooperation deal with US guarantees peace in the region