Thomas Cook shares plunge as travel firm stands on brink – business live

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Thomas Cook shares have hit a record low as the firm races to raise an extra £200m to stave off collapse

12.00pm BST

Alex Brignall, a travel and leisure analyst at City equities broker Redburn, says the banks’ demand for an extra £200m cushion could mean they’re seeking a speedier resolution to Thomas Cook’s financial woes – either through a rescue deal or another route:

It feels like a bit of strong-arming by the banks to see the Fosun deal get sorted quickly, or for the situation to be resolved in another way, likely through disposals. Triton has remained very keen to buy the Nordic business, so that should be able to be done if the other solutions do not come through on time.

The concerning thing is that September should be the best point of the year for the cash balance, so for banks to be demanding a cash top-up now suggests demand has taken a big hit from all the negative publicity and that the company is facing additional working capital stress.

11.28am BST

There are suggestions that banks withdrew their support for the Thomas Cook rescue deal after one of the non-lender partners in the deal did the same.

Sky News correspondent Paul Kelso has tweeted a few details:

Development in Thomas Cook stand-off with banks. Bank sources indicate RBS & other lenders only withdrew support for £900m rescue plan, and demanded additional £200m in cash reserves, after another party to the deal – not a bank – withdrew its support in recent days

RBS statement: “As one of a number of lenders, RBS, has provided considerable support to Thomas Cook over many years and continues to work with all parties in order to try and find a resolution to the funding and liquidity shortfall at Thomas Cook.”

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