Thomas Cook: shares suspended after liquidation filing
(CercleFinance.com) - Thomas Cook shares were suspended on Monday on news that the embattled British travel company has entered into liquidation, with immediate effect.
The tourism group said its discussions over the weekend to secure the final terms on its recapitalisation and reorganisation failed to reach an agreement with key shareholders and new money providers.
Although a deal had been largely agreed, the company said, an additional facility requested in the last few days of negotiations presented a challenge "that ultimately proved insurmountable".
Thomas Cook shares sank to all-time lows on Friday as the company said its discussions with China's Fosun included a request for an addtional facility of 200 million pounds, on top of the previously announced 900 million pounds injection of new capital.
An application was made to the High Court for a compulsory liquidation of the company. As part of this process, a number of other Thomas Cook Group companies have also entered into liquidation, the company said.
On the company's request, the Financial Conduct Authority (FCA) has temporarily suspended the shares, as of today.
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