Raab promises Thomas Cook customers they will not be stranded abroad amid rescue talks
Foreign secretary Dominic Raab has promised Thomas Cook customers that they will not be stranded abroad if the embattled holiday firm collapses.
The world’s oldest travel operator is in last-ditch talks this weekend to secure a £200m lifeline and avoid falling into administration.
Read more: Thomas Cook asks for government bailout
Raab said today that the government has put contingency plans in place to fly holidaymakers back to the UK if the company fails to reach a rescue deal.
The foreign secretary told the BBC: “We would wait to see and hope that it (Thomas Cook) can continue but in any event, as you would expect, we’ve got the contingency planning in place to make sure that in any worst-case scenario we can support all those who might otherwise be stranded.”
He added that ministers did not “systematically step in” when businesses went under unless there was “a good strategic national interest”.
The 178-year-old holiday giant has been holding emergency talks about a deal to hive off its Nordic airline and tour operating business units, according to the broadcaster.
It needs to find an additional £200m after banks – including RBS and Lloyds – demanded contingency funds for the upcoming winter season in which business is flat and cash is low for holiday companies.
Late last week the firm’s share price plunged after it confirmed lenders are demanding an extra £200m as part of efforts to rescue the world’s oldest holiday company.
The embattled company said that investors want £200m to finalise a restructuring strategy, coming on top of a further £900m recapitalisation deal made last month.
Read more: Thomas Cook: what happens now?
The troubled business is hoping to reach a rescue deal led by China’s Fosun this week, as it rushes to find extra money to plug the current financial hole.