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Thomas Cook Group files for insolvency, ceases trading
British travel company Thomas Cook Group plc has filed for insolvency in the night from Sunday to Monday. All booked trips, flights and holidays have been cancelled. (www.ifn.news) Mehr...
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Well, we all saw what happened to Lehman Brothers, didn't we? Shit happens.
Gotta maximize those hedges
Peter Fankhauser, the company's chief executive, apologized on Monday, adding that all attempts had been made to avoid liquidation. The operator had been looking for €226 million ($250 million) from investors to save it from insolvency.
"We have worked exhaustively in the past few days to resolve the outstanding issues on an agreement to secure Thomas Cook's future," said Fankhauser. "Although a deal had been largely agreed, an additional facility requested in the last few days of negotiations presented a challenge that ultimately proved insurmountable.
British Prime Minister Boris Johnson said the UK government should not bail out Thomas Cook, arguing that doing so would create a "moral hazard" because other firms might expect similar treatment in the future.
"We have worked exhaustively in the past few days to resolve the outstanding issues on an agreement to secure Thomas Cook's future," said Fankhauser. "Although a deal had been largely agreed, an additional facility requested in the last few days of negotiations presented a challenge that ultimately proved insurmountable.
British Prime Minister Boris Johnson said the UK government should not bail out Thomas Cook, arguing that doing so would create a "moral hazard" because other firms might expect similar treatment in the future.
"The hedge funds holding Thomas Cook CDS are threatening to scupper the rescue plan, which is led by China’s Fosun Tourism Group..."
https://www.bloomberg.com/news/articles/2019-09-17/thomas-cook-s-rescue-tests-reputation-of-default-protection
https://www.bloomberg.com/news/articles/2019-09-17/thomas-cook-s-rescue-tests-reputation-of-default-protection
I wish reports wouldn't say that travellers are "stranded". They're not. The government has put a repatriation program into place to bring those who are on a Thomas Cook holiday, home. If you flew out on the Sunday before they went bust, and you're on a two-week holiday, you'll be flown home on the day you were meant to fly home. You will still have your holiday.
Repatriation is funded by insurance that all operators - including Thomas Cook - are required to pay into to cover such an eventuality.
Nope. Travellers are responsible for their own insurance. For example, ATOL: "Air Travel Organiser's Licence" -- a UK financial protection scheme that safeguards most air package holidays sold by travel businesses that are based in the UK.
Through Oct 6, repatriation is being handled by the UK Civil Aviation Authority, the UK regulator.
The CAA will arrange return flights for ATOL-protected travelers currently abroad who were planning to fly back to the UK with Thomas Cook.
Travelers returning after October 6 will have to book their own flights back. But, if they are ATOL-protected they will be reimbursed for the cost of the new flight.
Through Oct 6, repatriation is being handled by the UK Civil Aviation Authority, the UK regulator.
The CAA will arrange return flights for ATOL-protected travelers currently abroad who were planning to fly back to the UK with Thomas Cook.
Travelers returning after October 6 will have to book their own flights back. But, if they are ATOL-protected they will be reimbursed for the cost of the new flight.
"Not everyone lost out with the collapse of 178-year-old Thomas Cook Group Plc that put 21,000 jobs at risk and left travelers around the world stranded.
Speculators including Sona Asset Management and XAIA Investment GmbH stand to earn as much as $250 million from the bankruptcy.
They invested in derivatives that pay out when a company defaults. The fate of those securities was at the heart of the battle over whether Thomas Cook lived or died." Hope this info gets into the right hands and companies like this, tank.