27 Nov 2011

New funding agreed for travel company

8:11 am on 27 November 2011

Thomas Cook has reached agreement with its bankers to provide it with new access to funding.

Shares in the travel company fell 75% on Tuesday after it said it was in talks about increasing borrowings.

Weak consumer confidence due to political unrest in Egypt and Tunisia and floods in Thailand has hit its sales.

Barclays, HSBC, RBS and UniCredit have agreed to provide a new £200 million facility until 30 April 2013.

The BBC reports the new deal replaces a £100 million short-term credit agreement announced on 21 October.

Thomas Cook's net debt was almost £900 million at the end of September. The BBC reports the new loan will take the figure to over £1 billion.

The company says it's been hit hard by political unrest and natural disasters. Bookings in France and Belgium are down 20% compared with last year.