Thomas Cook collapses - 600,000 tourists stranded following insolvency
tourism
23 Sep 2019
/ 05:41
UK. Last-minute rescue talks failed to save the company and Thomas Cook, one of the most powerful British brand names and with 178 years in the field of tourism, has gone into administration.
Approximately 22,000 jobs are at risk as well as 600,000 tourists, including 150,000 Britons with holiday packages abroad. The company had a strong presence in the Greek market - in Crete alone 80% of the hotels had some kind of collaboration.
Early on Monday morning the company filed for bankruptcy at the Supreme Court in London. The restructuring specialist AlixPartners was appointed to manage the administration and to work with CAA to arrange the repatriation of its customers in the next two weeks. The British Government called it the "biggest peacetime repatriation".
"Although we had come close to securing an agreement, we were unable to meet an additional demand that came up in the last days of negotiations," said Peter Fankhauser, Group Chief Executive Officer, referring to the banks' demands for an injection of 200m Sterling.
The Chinese company Fosun, already a major shareholder in the company, had proposed a 1.1 billion-dollar rescue package with which it would gain control of the tour operator operation and a 75% share of the airline.
Michalis Vlatakis, President of Crete Tourist & Travel Agents, said yesterday, while rescue talks were still proceeding, that if the worst did happen, there were safeguards. "There are insurance companies which will undertake the return of our visitors. I think the same applies to those who are still to come."
Source: naftemporiki.gr
Early on Monday morning the company filed for bankruptcy at the Supreme Court in London. The restructuring specialist AlixPartners was appointed to manage the administration and to work with CAA to arrange the repatriation of its customers in the next two weeks. The British Government called it the "biggest peacetime repatriation".
"Although we had come close to securing an agreement, we were unable to meet an additional demand that came up in the last days of negotiations," said Peter Fankhauser, Group Chief Executive Officer, referring to the banks' demands for an injection of 200m Sterling.
The Chinese company Fosun, already a major shareholder in the company, had proposed a 1.1 billion-dollar rescue package with which it would gain control of the tour operator operation and a 75% share of the airline.
Michalis Vlatakis, President of Crete Tourist & Travel Agents, said yesterday, while rescue talks were still proceeding, that if the worst did happen, there were safeguards. "There are insurance companies which will undertake the return of our visitors. I think the same applies to those who are still to come."
Source: naftemporiki.gr
