Thomas Cook: risk of airline default increased to 60%
The CEO tries to identify investors
The cost of debt insurance issued by the Thomas Cook airline to avoid insolvency has reached very high levels and the value of the shares has collapsed, due to the strong concerns of investors about the financial security of the charter. The leadership of Thomas Cook cut budget forecasts also suspending the payment of dividends, blaming the low tourist flows during the summer, but the five-year default index has been steadily rising and the probability of bankruptcy is estimated around 60% by 2022. What the company would need would be a capital increase but the next "Brexit", with all the uncertainty it is generating, is discouraging investment but CEO Peter Fankhauser would be holding private talks -as reported by the "Telegraph"- with some British banks to try to calm the waters by finding new funding. The cost of fuel and increased competition, however, is putting the operation of Thomas Cook at serious risk, which could also be sold, especially if the economic-financial situation does not improve.
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