Shares of Thomas Cook Group Plc (TCG.L,TCKGY.PK) rose about 16 percent Tuesday morning, after the troubled tour operator confirmed that it is in advanced discussions with its banking group regarding extension of its financing arrangements.
Last November, Thomas Cook shares lost 75 percent of their value on a single day after the company said it will seek lenders to rescue it from the financial turmoil it suffered due to slow holiday period and continuing economic worries.
In response to press speculation, the company stated today that the talks are part of its strategic review, following an agreement of terms of a new facility in November last year. Thomas Cook intends to report more details on the results of the review while releasing its interim results.
In addition to its previously announced asset disposal programme and sale of Thomas Cook India, the Group is exploring a possible sale and leaseback of certain aircraft.
It was in February this year that the company launched a sale process for its 77.1 percent shareholding in its Indian subsidiary Thomas Cook (India) Ltd. There were also reports that the parent company is planning to sell a stake at significant premium.
Last month end, the company announced that it has experienced improvement in recent UK booking trends, while Europe remains subdued. The travel firm said it continues to expect fiscal 2012 to be a challenging year, citing the economic backdrop and difficult trading environment particularly for winter.
For its first quarter, Thomas Cook had reported a pre-tax loss of 151.7 million pounds, wider than 99.3 million pounds last year.
TCG.L is currently trading at 23.75 pence, up 3.25 pence or 15.85 percent, on a volume of 13.91 million shares on the LSE.
by RTT Staff Writer
For comments and feedback: email@example.com