Thomas Cook Wins New Bank Support

Thomas Cook Group Plc, one of Europe’s largest travel firms, gained the support of its banks with £200 million in new financing. The move will improve Thomas Cook’s financial position that was impacted by a decline in share values last week.

The loan provides the Group with increased ability to deal with expected events and the effects of an uncertain economic environment, Cook said. The Board is taking steps to reduce the Group’s debt and improve its capital structure.

The Group will announce its preliminary results for the twelve months ended September 30, 2011 later this month. Sam Weihagen, Group Chief Executive said the company was delighted with the agreement and thanked the banks for acting swiftly.

The new £200 million revolving credit line recognizes the Group’s seasonal working capital patterns, the company said. The company has also agreed to restrictions including no new share or business acquisitions, a limit on capital expenditure and a prohibition on dividends and share buy-backs.

Cook said the agreement would cost about £10 million.

Thomas Cook shares jumped as much as 50 percent when the deal was announced.

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