This new agreement now takes Thomas Cooks borrowing to well over £1 Billion after they announced in September that the company debt was close to £900 Million, but experts predict that the debt could reach around £1.5 Billion by the end of the year.
As a result of the announcement on Tuesday to borrow more funds, Thomas Cooks' value plummeted 75% on the Stock Exchange, making it worth only £87 Million, but this new agreement will replace the £100 Million short term credit deal that Thomas Cook currently has with the banks and hopefully will give the company breathing space to re-structure parts of the company.
A recent message from Thomas Cook on Twitter said "Thomas Cook reassures all customers it is business as usual. Our holidays are fully protected and can be booked with complete confidence".
The Travel Firm which was founded in 1841 recently run into more problems when sources suggested that Thomas Cooks' former Chief Executive "Manny Fontenla-Novoa" was paid around £16.7 Million over the last four years and 10 months of her employment, corporate governance activists are now trying to claw back some of the multi-million pound bonuses that were paid to Manny Fontenla-Novoa.
Fit4Talent hopes the British Travel Company gets out of trouble soon and continues to operate for many years to come.
Image via Wikipedia.
