23 Nov 2011

Shares drop as travel company looks for more borrowing

12:50 pm on 23 November 2011

Shares in Europe's second biggest travel company, Thomas Cook, have lost three-quarters of their value after it announced it is in talks with banks about increasing the amount of money it can borrow.

The company says it has seen a deterioration of trading due to political unrest in Egypt and Tunisia and floods in Thailand.

Thomas Cook is expected to close 200 of its shops and get rid of planes and sell hotels.

Chief executive Sam Weihagen says the measures are designed to turn the business around.

"The investors should have confidence in Thomas Cook. We are negotiating with our banks, the banks have always been very supportive to us and I am very confident that they will give us this extra cushion that we need," he says.

Mr Weihagen says Thomas Cook customers should be reassured their bookings were fully protected.