UK holiday firm Thomas Cook agrees key terms of rescue deal

[LONDON] Thomas Cook Group said on Wednesday it had agreed the key commercial terms of a rescue package with investor Fosun Tourism, its banks and a majority of its bondholders.

The British package tour operator said in July it was working to secure new investment from shareholder Fosun Tourism , which would see the Hong Kong group take control of the business at the expense of other shareholders.

The terms announced on Wednesday will see Fosun contribute £450 million (S$767.4 million) of new money in return for at least 75 per cent of the tour operator business and 25 per cent of the group's airline.

Thomas Cook's lending banks and noteholders will stump up a further £450 million for 75 per cent of the airline and up to 25 per cent in the tour operator business, the group said.

REUTERS