Thomas Cook Need £200M From Chinese Investment Firm

UK Government promises that passengers of Thomas Cook will not be stranded, even though Dominic Raab does not want to talk about contingency plans.

Thomas Cook faces going under if they cannot secure £200 million in capital.

The company employs around 22,000 people worldwide, including 9,000 in the UK.

Representatives from Thomas Cook are currently meeting with a Chinese investment company in a bid to raise the needed capital to avoid bankruptcy.

Katie Prescott, the BBC’s Business Correspondent said, “If there is no agreement, then the decision to wind up the company will be taken at a Board meeting this evening.

“It’s likely (looking at the precedent of Monarch’s collapse) that any announcement about that will be made late at night, once all planes are on the ground.

“But the company doesn’t have to announce anything until the markets open at 07:00 BST on Monday.

It’s low season at the moment, the time of year when Thomas Cook has to pay its suppliers for the busy summer season just gone. Hoteliers are paid on 60 to 90-day terms, once travellers have already taken their holidays.

“The nightmare scenario is that hoteliers who don’t think they will get paid might turn out the people staying with them.”

When Raab appeared on the BBC’s Andrew Marr show, he said contingency plans were being made, but, he doesn’t want to talk about them at the risk they will become a self-fulfilling prophecy.

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