Despite a deal to stave off its creditors with China’s Fosun Group, Thomas Cook has been given a week by creditors to come up with £200m to refinance part of its huge debt, or face bankruptcy.
Under CAA rules the airline would have to end all flights and leave thousands stranded until the ABTA bonds and rescue system kicks in to bring people home.
The group has vast pools of debts and its already raised £900m from Fosun. Without the additional cash there seems almost no way to keep the airline group flying longer term. It’s one valuable asset it’s creditors will be eyeing those to recoup losses.
At present the airline is operating normally, but it seems it may be running rapidly out of time.