Thomas Cook travel chaos: insolvency leaves 150,000 stranded on holidays – live updates
A huge repatriation effort has begun after company ceases trading with immediate effect, causing flights to be cancelled
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Here’s a clip of Peter Fankhauser, Thomas Cook’s chief executive, confirming the “devastating news” that the official receiver has now taken control of the holiday firm:
Peter Fankhauser, Chief Executive of #ThomasCook makes his first public appearance since the collapse of the travel giant. He expresses his regret and apologises for the anxiety, stress and disruption. @BBCNews @BBCBreakfast @BBCWorld @BBCBusiness pic.twitter.com/HqdnCUoQZk
Thomas Cook has fate was sealed after its banks demanded an extra £200m of funding to tide it over the winter period.
That proved a stretch too far for the company, which was already trying to raise £900m through a rescue deal.
“Unfortunately, and notwithstanding the efforts of all stakeholders, the £1.1bn funding requirement to adequately recapitalise Thomas Cook has ultimately proved too significant. The Lenders providing finance facilities to the Group have been extremely supportive stakeholders, including through two periods of financial distress and have stood behind Thomas Cook over the past twelve months, a period where the Group saw cash outflows of about £1bn, maintaining that position over the crucial and busy summer holiday period.
“Obviously, the Lenders are deeply disappointed that it has not proved possible to rescue Thomas Cook. In partnership with other stakeholders, the Lenders worked tirelessly to examine all options within the timeframe required.”