Thomas Cook: shares sink to record low on recapitalisation

(CercleFinance.com) - Thomas Cook shares have collapsed by almost 20%, reaching an all-time low on Friday as the British tourist operator's recapitalisation plan triggered new fears of share dilution and uncertainty over business continuity.


The company said in a statement that its discussions with China's Fosun include a recent request for a seasonal standby facility of 200 million pounds, on top of the previously announced 900 million pounds injection of new capital.

"The recapitalisation is expected to result in existing shareholders' interests being significantly diluted, with significant risk of no recovery," the group warned.

Following this statement, the Thomas Cook share was in a spin - down 19% at 3.6 pence, after bottoming out at 3.4 pence earlier, its lowest level ever.

The shares are down about 89% since the beginning of the year.

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