British travel group Thomas Cook (TCG) could fall into administration this week unless it finds an extra £200 million ($251 million) to satisfy its lenders and secure its future as the world’s oldest holiday company.
Thomas Cook, which employs 21,000 people across 16 countries, warned on Friday that this could mean shareholders losing all of their investments, Reuters reported.
Shares in Thomas Cook hit a record low of 3.4 pence following its statement, and were down 16.1%. Banks, including RBS and Lloyds, insist the firm comes up with the new contingency funds in case it needs extra money during the winter months.
Sources close to the matter insisted there were still "reasonable prospects" of a deal. But they added that the coming 24 hours were crucial to the travel group's survival.
There are currently 600,000 Thomas Cook customers on holiday in Europe, of which around 150,000 to 160,000 are from the UK. Thomas Cook has said it would provide further updates “in due course”.
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