Thomas Cook firm confirmed on Friday, it was seeking 200 million pounds, or about $250 million, in extra funding to avoid its collapse. If Thomas Cook goes under, Britain's Civil Aviation Authority would likely be ordered to launch a major repatriation operation to fly stranded vacationer home.
The 178-year-old British travel firm had until 11.59pm last night to pay creditors or else they'd go under - leaving 200,000 Brits stranded. In addition as many as 9,000 employees face losing their jobs after the world's oldest travel company plunged into bankruptcy.
Thomas Cook
In May, Thomas Cook reported in half-year results that it had a net debt burden of 1.25 billion pounds. He reported that the political uncertainty related to Britain's departure from the European Union had led to softer demand for summer holidays. The company said higher fuel and hotel costs also were weighing on business.
A spokesman for Royal Bank of Scotland, one of Thomas Cook's lenders, explained that the bank provided considerable support to the tour operator over many years and "continues to work with all parties in order to try and find a resolution to the funding and liquidity shortfall.
Chief Executive Peter Fankhauser, announced that was a matter of profound regret that the company had gone out of business after it failed to secure a rescue package from its lenders in frantic talks that went through the weekend.
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Hundreds of thousands customers from British travel firm Thomas[/caption]
On other hand, British Prime Minister Boris Johnson, pledged to get stranded British travellers home and revealed that the government had rejected a request from Thomas Cook for a bailout of about 150 million pounds ($187.1 million) because doing so would have set up a "moral hazard".
Later, the company tried to reache a provisional agreement covering the “key commercial terms” of a £900 million capital injection involving Chinese tourism group ''Fosun''.
Noteworthy, the firm includes the famed operator of packaged tours as well as subsidiaries such as Thomas Cook Airlines, Condor, and Thomas Cook Hotels & Resorts.
Also, the company employs about 22,000 people, 9,000 of them in the UK, and serves 19 million people a year in 16 countries.
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