TCG.L - Thomas Cook Group plc

LSE - LSE Delayed price. Currency in GBp
4.5000
+0.0060 (+0.13%)
At close: 4:35PM BST
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Previous close4.4940
Open4.5090
Bid4.4180 x 0
Ask4.4990 x 0
Day's range4.4010 - 4.6100
52-week range4.3000 - 78.4500
Volume11,979,372
Avg. volume37,896,965
Market cap69.113M
Beta (3Y monthly)0.55
PE ratio (TTM)N/A
EPS (TTM)-90.2000
Earnings date25 Nov 2019 - 29 Nov 2019
Forward dividend & yieldN/A (N/A)
Ex-dividend date2018-03-08
1y target est49.49
  • Reuters - UK Focus

    UPDATE 1-Panel to rule on credit dispute key to Thomas Cook's future

    A panel of bankers will rule on Thursday whether some investors in Thomas Cook's credit are due a payout under bankruptcy rules, a decision that could smooth a rescue of the world's oldest travel company. Holders of Credit Default Swaps (CDS), instruments used to insure exposure to credit, are digging in for a payout for their bets against the company.

  • Reuters

    Panel to rule on credit dispute key to Thomas Cook's future

    A panel of bankers will rule on Thursday whether some investors in Thomas Cook's credit are due a payout under bankruptcy rules, a decision that could smooth a rescue of the world's oldest travel company. Holders of Credit Default Swaps (CDS), instruments used to insure exposure to credit, are digging in for a payout for their bets against the company.

  • Reuters - UK Focus

    Thomas Cook restructuring plan overshadowed by CDS dispute

    The fate of travel firm Thomas Cook could be shaped by a technicality: that a panel of bankers declare it has committed a default before it can be saved, in order to satisfy credit investors who had bet on its demise. Thomas Cook agreed the key terms of a rescue deal with shareholder Fosun last month, but it must be approved by creditors next week. Holders of Credit Default Swaps (CDS), instruments used to insure exposure to credit, are digging in for a payout for their bearish bets on the company.

  • Thomas Cook’s Rescue Tests Reputation of Default Protection
    Bloomberg

    Thomas Cook’s Rescue Tests Reputation of Default Protection

    (Bloomberg) -- The $10 trillion market for derivatives that pay out if a company goes bust faces a test of its credibility as U.K. travel agent Thomas Cook Group Plc heads toward a $1.1 billion rescue.Thomas Cook filed for Chapter 15 bankruptcy protection in the U.S. on Monday as part of a broader debt restructuring. But the filing stopped short of stating the company is insolvent, an ambiguity that means hedge funds holding credit-default swaps insuring Thomas Cook debt may not get their money.Investors holding the swaps are already battling against a technicality in the terms of Thomas Cook’s planned debt restructuring that threatens to make their CDS holdings worthless. The rescue centers on converting Thomas Cook debt into equity, which leaves the swaps with no bonds to insure.“Buying insurance against a default and then being unable to claim when the company does actually default defeats the point of having it,” said Henry Craik-White a portfolio manager at Wells Fargo Asset Management in London. “It makes a mockery of the product.”CDS contracts pay out when a Determinations Committee of swaps traders decides that a company running into difficulty and failing to keep up with its debt obligations constitutes a so-called credit event.The hedge funds holding Thomas Cook CDS are threatening to scupper the rescue plan, which is led by China’s Fosun Tourism Group, by blocking it at a creditor meeting later this month. If that maneuver is successful, it could also challenge the reputation of the CDS market.Regulators are already eyeing the derivatives market for so-called manufactured credit events, when funds entice companies to miss bond payments they could otherwise make. Even the Pope has linked the swaps to “extremely immoral actions.”“Once a company gets close to a credit event, CDS protection buyers have a serious incentive to make sure the swaps get triggered,” said Mahesh Bhimalingam, senior European credit strategist at Bloomberg Intelligence. “It can encourage some activity that feels like abuse of power or market manipulation to outsiders.”Read more: Thomas Cook Rescue Under Challenge From Hedge-Funds PlanSona Asset Management, one of the hedge funds seeking a payout on Thomas Cook swaps, made money on a similar trade earlier this year involving retailer New Look. Sona was able to ensure New Look swaps paid out by buying enough of the U.K. fashion retailer’s bonds to influence its debt restructuring.Asset RulesCredit protection on banks and sovereigns is easier to settle than on companies because those contracts were updated in 2014 to allow them to pay out even after debt is converted into equity or wiped out.Thomas Cook’s case may lead to more pressure for those rules, known as “asset-package delivery” to be applied to corporate CDS.“If only the asset-package delivery rule applied to European corporates as well, there wouldn’t be this problem,” said Soren Willemann, a Barclays Plc credit strategist.A spokesman for the International Swaps and Derivatives Association said that any change to the market’s rules will require “broad industry consensus and agreement.”Chapter 15 protection has triggered CDS payments before, for example on Canadian paper company Tembec Industrials Inc. over a decade ago, according to Neill Keaney, an analyst at CreditSights in London. But the precise level of court protection required by Thomas Cook may be deemed insufficient for a credit event, he said.The Determinations Committee has come in for criticism in the past when traders experienced delays in settling swaps linked to Spanish lender Banco Popular Espanol SA and commodity trader Noble Group Ltd.“If Thomas Cook CDS doesn’t pay out then there will be inevitable questions over the efficacy of the instrument,” Keaney said. “Arguments will arise again over letter of the law versus spirit of the law.”To contact the reporter on this story: Katie Linsell in London at klinsell@bloomberg.netTo contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net, Chris VellacottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Thomas Cook Files for U.S. Bankruptcy Protection
    Bloomberg

    Thomas Cook Files for U.S. Bankruptcy Protection

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Thomas Cook Group Plc has filed for Chapter 15 court protection in the U.S. as part of a broader debt restructuring for the U.K. travel agent.The company’s Chapter 15 petition was filed in the Southern District of New York, court papers dated Sept. 16 show. Law firm Latham & Watkins is representing the company, according to the documents.Chapter 15 of U.S. bankruptcy law shields foreign companies from lawsuits by U.S. creditors while they reorganize in another country. The filing may also trigger the payout of default insurance on Thomas Cook debt.Read more: Thomas Cook Rescue Under Challenge From Hedge-Funds PlanThe travel agent’s creditors are set to vote on Sept. 27 on a proposed scheme of arrangement, a U.K. court procedure that will allow Chinese investor Fosun Tourism Group to lead a planned rescue of the company.Thomas Cook proposed to swap 1.67 billion pounds ($2.07 billion) of bank debt and bonds for 15% of the equity and at least 81 million pounds of new subordinated notes, which will pay interest with more debt, according to the documents. After the injection of at least 900 million pounds of new money, Fosun will hold 75% of the shares of the tour operator arm and up to 25% of the airline.The case is Thomas Cook Group Plc, 19-12984, U.S. Bankruptcy Court for the Southern District of New York.(Adds restructuring plan details in fifth paragraph)To contact the reporters on this story: Irene García Pérez in London at igarciaperez@bloomberg.net;Katie Linsell in London at klinsell@bloomberg.netTo contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net, Luca CasiraghiFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • U.K. Aviation Watchdog Prepares for Possible Thomas Cook Collapse
    Bloomberg

    U.K. Aviation Watchdog Prepares for Possible Thomas Cook Collapse

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.The U.K. aviation regulator is preparing for a possible collapse of tour operator Thomas Cook Plc ahead of a showdown with bondholders, the Times of London reported, without saying where it got the information.The Civil Aviation Authority is making contingency plans for the possibility of having to repatriate “hundreds of thousands” of passengers stranded abroad, the newspaper said. The regulator’s preparations come ahead of an Oct. 1 deadline for renewal of Thomas Cook’s air travel organizer’s license. The U.K. Civil Aviation Authority was unavailable for comment outside of normal working hours. Thomas Cook declined to comment on a possible delay of the meeting. Thomas Cook is currently trying to secure a more than 1 billion-pound ($1.3 billion) rescue package with lenders and bondholders including Fosun International Ltd. The travel agent may appeal to the courts to push back a bondholder meeting set for Wednesday in order to gain more time to finalize the restructuring agreement, the Financial Times reported without saying where it got the information.Thomas Cook’s bonds fell to record lows on Friday and shares have fallen 84% this year as it seeks a rescue amid wilting profits, falling demand and the impact of Brexit. Last week, a group of hedge funds holding credit insurance on the company was said to challenge the plan in order to ensure they get a payout. Thomas Cook has lined up AlixPartners as an adviser if rescue talks with Fosun and other lenders fall apart.\--With assistance from Niluksi Koswanage.To contact the reporter on this story: Michael Msika in London at mmsika4@bloomberg.netTo contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Stephen Treloar, Andrew DavisFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Why the Thomas Cook share price fell 27% in August
    Fool.co.uk

    Why the Thomas Cook share price fell 27% in August

    The Thomas Cook Group plc (LON:TCG) share price had another shocking month in August but is the stock now a stunning bargain or a portfolio destroyer?

  • Thomas Cook Group plc (LON:TCG): What Does Its Beta Value Mean For Your Portfolio?
    Simply Wall St.

    Thomas Cook Group plc (LON:TCG): What Does Its Beta Value Mean For Your Portfolio?

    Anyone researching Thomas Cook Group plc (LON:TCG) might want to consider the historical volatility of the share...

  • Bloomberg

    Thomas Cook Rescue to Be Challenged

    (Bloomberg) -- Holders of credit insurance on Thomas Cook Group Plc are drawing up plans to potentially block the U.K. travel agent’s $1.1 billion rescue in order to ensure they get a payout.The group of hedge funds, including Sona Asset Management and XAIA Investment GmbH, may vote against a bailout led by Fosun Tourism Group at a creditor meeting on Sept. 18 if they don’t secure their payment before then, according to people familiar with the plan. Fosun’s rescue includes a debt-for-equity swap that could prevent compensation on their default insurance.The hedge funds are drawing up the plans because they fear the conversion into equity swap that’s central to the restructuring may leave their holdings of credit-default-swaps with no debt to insure. This would prevent a payout in accordance with the contracts.Law firm Fieldfisher LLP is representing them, the people said asking not to be named discussing private information. The investors also bought Thomas Cook bonds entitling them to attend the meeting.Under the rules of schemes of arrangement -- a U.K. court procedure -- the investors will need to hold at least 25% of Thomas Cook’s bonds to influence the debt restructuring. Investors hold about $261 million of swaps on Thomas Cook in total, according to the latest data from the International Swaps & Derivatives Association.Representatives for Fieldfisher, Sona and XAIA declined to comment on the plans.The group has already contacted Thomas Cook’s financial adviser PJT Partners and the bondholders’ legal adviser Milbank, according to the people familiar with the matter.Representatives from PJT and Milbank declined to comment.Thomas Cook declined to comment. As part of the schemes of arrangement, the company may file for Chapter 15 court protection from creditors in the U.S. That could trigger a payout on the default swaps before next week’s bondholder meeting and solve the problem for the insurance holders.Read more: Credit Swaps Flaw Spurs Trade on Thomas Cook Debt RestructuringThe travel company sought its rescue amid wilting profits as its core north-European customers vacationed at home during successive summer heatwaves. Uncertainty over the economic impact of Brexit has also weighed on demand.Sona has successfully steered a similar maneuver in the past. The London-based fund ensured payouts on New Look Retail Group Ltd.’s swaps earlier this year by buying enough of the U.K. fashion retailer’s bonds to influence its debt restructuring.To contact the reporter on this story: Katie Linsell in London at klinsell@bloomberg.netTo contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net, Chris VellacottFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Why I’d shun the Thomas Cook share price, and pile into this dynamic FTSE 100 stock
    Fool.co.uk

    Why I’d shun the Thomas Cook share price, and pile into this dynamic FTSE 100 stock

    Roland Head explains why he thinks this FTSE 100 (INDEXFTSE: UKX) firm should be a more profitable buy than Thomas Cook Group plc (LON: TCG).

  • Could the Thomas Cook share price double your money?
    Fool.co.uk

    Could the Thomas Cook share price double your money?

    Do I think the Thomas Cook Group plc (LON: TCG) share price could boost investors' returns as its turnaround gains traction?

  • Could Thomas Cook go bust?
    Fool.co.uk

    Could Thomas Cook go bust?

    As the tour operator sells off its assets, is Thomas Cook Group plc (LON: TCG) at risk of going bust?

  • Is this the beginning of the end for Thomas Cook shares?
    Fool.co.uk

    Is this the beginning of the end for Thomas Cook shares?

    Could a £900m cash infusion drive the Thomas Cook Group plc (LON: TCG) share price to zero?

  • Thomas Cook Closes In on $1.1 Billion Rescue Deal
    Skift

    Thomas Cook Closes In on $1.1 Billion Rescue Deal

    Thomas Cook has moved a step closer to securing its future after reaching a “substantial agreement” over a proposed rescue deal with shareholder Fosun Tourism Group and its creditors. The terms of the deal will see Fosun invest $549 million (£450 million), acquiring at least 75 percent of the equity of the tour operator — […]

  • China's Fosun set to save Thomas Cook as key terms agreed
    Reuters

    China's Fosun set to save Thomas Cook as key terms agreed

    British travel operator Thomas Cook Group said on Wednesday it had agreed the main terms of a rescue package that will see China's Fosun Tourism take over its tour operations and creditor banks and bondholders acquire its airline. Thomas Cook also said in July that it was working to secure new investment from shareholder Fosun Tourism which would see the Chinese group take control of the business, along with Thomas Cook's lenders whose debt would be converted into equity. The terms announced on Wednesday will see Fosun - whose Chinese parent owns all-inclusive holiday firm Club Med - contribute 450 million pounds ($552 million) of new money in return for at least 75% of the tour operator business and 25% of the group's airline.

  • Should I buy shares in Thomas Cook after 15% price fall?
    Fool.co.uk

    Should I buy shares in Thomas Cook after 15% price fall?

    Thomas Cook Group plc (LON: TCG) has revealed details of its rescue plan. Here's what I'd do about it.

  • Thomas Cook Gets Its $1.1 Billion Holiday Ticket
    Bloomberg

    Thomas Cook Gets Its $1.1 Billion Holiday Ticket

    (Bloomberg Opinion) -- Thomas Cook Group Plc’s rescue by Fosun Tourism Group moved a step closer on Wednesday as creditors approved a 900 million-pound ($1.1 billion) bailout led by the Chinese investor.The ailing British travel company’s shareholders could be forgiven for thinking they have got the loungers on the shady side of the pool.Under the terms of the deal, Fosun will own 75% of the tour operator and 25% of the airline, in accordance with European Union rules requiring airlines to be majority-owned by European investors. Creditors will own 25% of the tour operator and 75% of the airline.This deal isn’t quite done yet – completion is targeted for October. But it should be sufficient to see Thomas Cook through the low winter season. That should reassure customers and prevent any further slide in trading.What’s more, unlike other attempts to strengthen the company’s finances, this one doesn’t rely on the sale of the airline. The banks and bondholders may not be long-term owners of a majority stake in the group’s airline, but a sale isn’t needed right now to support this recapitalization.The company’s 750 million euros of 6.25% bonds due in 2022 rose as much as 48% on Wednesday, before paring that gain. The shares fell 18% to 5.8 pence.That’s a sign there will be little left for stockholders, who have seen their shares slump by 93% over the past year. Thomas Cook said it intends to maintain a listing, but it acknowledged that the recapitalization may lead to it being de-listed.Shareholders may be able to invest alongside Fosun and lenders. Given that they are likely to see their existing holdings wiped out, it’s hard to see much appetite for more exposure.The recapitalized Thomas Cook will still face competition from Germany’s TUI AG, which has the advantage of also owning hotels and cruise ships, as well as a stronger balance sheet. Thomas Cook must also continue to navigate turbulence from Britain’s exit from the European Union and the knock-on effects on the both sterling and the U.K. consumer.Fosun’s long game seems to have paid off here. It will get control over Thomas Cook’s prize asset, the travel agency, and a minority stake in its airline – without having to pay a premium to shareholders.To contact the author of this story: Andrea Felsted at afelsted@bloomberg.netTo contact the editor responsible for this story: Edward Evans at eevans3@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andrea Felsted is a Bloomberg Opinion columnist covering the consumer and retail industries. She previously worked at the Financial Times.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • What to Watch: Pound falls on parliament fears, recession fears hit markets, and Ted Baker's Japan deal
    Yahoo Finance UK

    What to Watch: Pound falls on parliament fears, recession fears hit markets, and Ted Baker's Japan deal

    A daily overview of the top business, market, and economic stories to watch in the UK, Europe, and abroad.

  • Thomas Cook Creditors Back $1.1 Billion Fosun-Led Rescue
    Bloomberg

    Thomas Cook Creditors Back $1.1 Billion Fosun-Led Rescue

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Debt-laden U.K. travel giant Thomas Cook Group Plc secured the backing of its lending banks and bondholders for a 900 million-pound ($1.1 billion) bailout led by Chinese investor Fosun Tourism Group.Fosun will provide half of the total in return for control of Cook’s tour-operator arm and a stake in its airline, the London-based holiday firm said Wednesday. Banks and noteholders will contribute the rest, while converting their existing debt into stock.The bailout, first announced in July, provides stability for Cook as it prepares for the coming winter low season, when tour operator profits are traditionally squeezed. The bonds surged, while the shares, which will be significantly diluted, declined as much as 18%.For Fosun Tourism, listed separately from its parent since December, the transaction marks the acquisition of its second sizable tourism asset in Europe, after the purchase of iconic French resort company Club Mediterranee in 2015.The deal will leave Fosun holding at least 75% of Cook’s main holiday business and around 25% of its airline division. Lenders will get the rest of the airline and up to 25% of the tour business.Other investors may be given the opportunity to participate in the recapitalization, while Cook also said for the first time that the main Plc -- which will become a shell with few assets -- could ultimately be de-listed.Thomas Cook’s 750 million euros ($831 million) of bonds due 2022 rose as much as 48% on the euro to 30.4 cents, the highest in three weeks, according to Bloomberg data. The stock fell 15% to trade at 6 pence as of 9:07 a.m. in London.Margins at Thomas Cook have been shrinking amid a sluggish European vacation market as more people holiday at home following successive summer heatwaves. Uncertainty over the economic impact of Brexit has also weighed on demand, leading the company to predict a lower second-half operating profit.The transaction leaves the way open for a possible sale of Cook’s airline arm. The company earlier sought a buyer for the business, which includes Germany’s Condor and operates about 100 jets. As a non-European entity, Fosun cannot own a majority stake in the carrier without losing traffic rights.The recapitalization remains slated for completion in early October, subject to antitrust approval and a legally-binding accord between the parties. Cook will launch inter-conditional creditor schemes of arrangement seeking consent to amend terms of its 2022 and 2023 notes and a 2017 revolving credit.(Updates with Fosun expansion from fourth paragraph.)\--With assistance from Shirley Zhao.To contact the reporters on this story: Richard Weiss in Frankfurt at rweiss5@bloomberg.net;Luca Casiraghi in London at lcasiraghi@bloomberg.netTo contact the editors responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net, ;Anthony Palazzo at apalazzo@bloomberg.net, Christopher JasperFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters - UK Focus

    MORNING BID EUROPE-Worries are building about the world economy

    Growth data for the second quarter is trickling in from around the world, and we are likely to see concern building about the world economy, especially after data showed the German economy contracted 0.1% in the second quarter. Pain is growing across emerging markets, too. China denied any phone calls had recently taken place (despite President Donald Trump’s assertion at the G7).

  • Reuters - UK Focus

    UPDATE 3-China's Fosun set to save Thomas Cook as key terms agreed

    British travel operator Thomas Cook Group said on Wednesday it had agreed the main terms of a rescue package that will see China's Fosun Tourism take over its tour operations and creditor banks and bondholders acquire its airline. Thomas Cook also said in July that it was working to secure new investment from shareholder Fosun Tourism which would see the Chinese group take control of the business, along with Thomas Cook's lenders whose debt would be converted into equity.

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