Thomas Cook asks for government bailout after giving up on private rescue
Thomas Cook has approached the government in a last-ditch bid to plug a £200m gap that could see it fall into administration this weekend.
The travel operator is desperately searching for a rescue deal and has now asked the government for a bailout, the BBC reports.
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It comes after lenders including RBS and Lloyds have demanded more money for the approaching winter season, when holiday companies traditionally perform worse.
They have asked Thomas Cook for an extra £200m on top of the previous £900m recapitalisation deal reached with majority shareholder Fosun last month.
If the company collapses it would leave around 160,000 UK holidaymakers stranded among some 600,000 currently on holiday with the operator.
There are still “reasonable prospects” of a deal, sources told BBC, but the next 24 hours could prove crucial..
“We do not speculate on the financial situation of individual businesses,” the Department for Transport said in a statement.
The Civil Aviation Authority is on standby with a repatriation contingency plan called Operation Matterhorn, the BBC says.
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The CAA declined to comment .
The potential cost of bringing home passengers is reportedly put at about £600m.