It appears Thomas Cook is in trouble again.
Fears that the beleaguered British tour operator/airline could fall from the corporate sky any time now was heightened this morning when Associated Press reported that the company’s already devalued stock lost another 75 per cent of its value on news that Thomas Cook is again seeking “new agreements” with its main creditors.
If even one of those creditors refuses to renegotiate, Thomas Cook could very well collapse.
That could have serious consequences for Thomas Cook’s Canadian subsidiaries, which include Sunquest Holidays and Bel-Air Travel.
Thomas Cook, which took 22 million people on vacation trips last year, has been in free fall for several years now thanks mainly to the depressed travel market in Europe - especially Great Britain - as well as after making some ill-timed corporate purchases.
The announcement comes just one month after Thomas Cook announced it had negotiated new funding arrangements with creditors to carry it through the slow winter months.
Sooner or later, the creditors will start saying “no” and then all bets are off on Thomas Cooks’ future.
In the meantime, Thomas Cook is insisting that all its flights will leave as schedule and new bookings are still being taken.
Stay tuned.
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