UK holiday firm Thomas Cook agrees key terms of rescue deal

Credit: REUTERS/THOMAS WHITE

Thomas Cook Group said on Wednesday it had agreed the key commercial terms of a rescue package with investor Fosun Tourism, its banks and a majority of its bondholders.

LONDON, Aug 28 (Reuters) - Thomas Cook Group TCG.L said on Wednesday it had agreed the key commercial terms of a rescue package with investor Fosun Tourism, its banks and a majority of its bondholders.

The British package tour operator said in July it was working to secure new investment from shareholder Fosun Tourism 1992.HK, which would see the Hong Kong group take control of the business at the expense of other shareholders.

The terms announced on Wednesday will see Fosun 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.

Thomas Cook's lending banks and noteholders will stump up a further 450 million pounds for 75% of the airline and up to 25% in the tour operator business, the group said.

($1 = 0.8145 pounds)

(Reporting by Paul Sandle; editing by Kate Holton)

((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.thomsonreuters.com@reuters.net))

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