Thomas Cook Ceases Trading - Compulsory Liquidation (EDIT MON 23/9)
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I certainly wouldn't consider cancelling and losing £500 at this stage. I think that by October 1st the issue will have become much clearer, if the deal to sell to the Chinese is going ahead, the CAA will renew their ATOL licence and you should be fine, if not, then if worst happens you have bought an ATOL package and will be protected.0
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Nicklyn, hi and Welcome to MSE. I would look at similar alternative holidays for £1668 and see what the best alternative could be. In the meantime keep your eye on the TC situation.Posts are not advice and must not be relied upon.0
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Pay it on credit card. Double protection then aswell as ATOL. You will kick yourself if they stay afloat and you have thrown your deposit away. Worst case you cant go away in Jan, but get your money back to book something else. I know which i would prefer.0
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I have a Disney Holiday booked due to fly on the 3rd of Oct. should I be worried? We’re triple covered with Insurance/ATOL and Credit Card but all of our plans are in place to fly that day ��0
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Many thanks to all the replies. I think I will follow advice and wait and see what happens next week.0
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Up-north-eng the truth is that there is nothing you can do about it at this stage but prepare for your holiday and assume that all will be well. There are some who are attempting to talk it out of business but if those that are owed money at present agree to a deal at a meeting on the 27th, everything should be fine for your holiday0
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What happens to your travel insurance if they go under and you cant go?
My insurance isnt that cheap due to a medical condition, so if i cant go or get the same holiday for the same dates, can i claim the premiums back?0 -
Bobblebob, I suspect the insurers would refuse to refund the policy as they have been on risk that you might cancel (which accounts for around 50% of all claims) from the day you took out the policy. Nevertheless, if it is a good company, it would be worth a try0
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Thomas Cook is seeking to break the deadlock in a stand-off with creditors over its £1.1bn rescue plan by declaring itself bankrupt in US – a move that would become a test case for the global $10 trillion credit default swaps market.
The embattled travel agent filed for Chapter 15 bankruptcy protection in New York on Tuesday, a move that could trigger an event of default that allows derivatives held by hedge funds to pay out.
The Telegraph
Essentially this Chapter 15 action protects foreign companies from lawsuits by US creditors while they reorganise their debt. Crucially, in this case, it also potentially triggers the payout of default insurance for a group of bondholders who may have blocked the deal.There is a pleasure in the pathless woods, There is a rapture on the lonely shore, There is society, where none intrudes, By the deep sea, and music in its roar: I love not man the less, but Nature more...0 -
This may nor may not be good news. The intention was clearly to force the insurers to pay the bondholders, who are the ones holding up the sale as they are likely to lose everything and are hoping for an insurance claim. The problem is the hearing is not until 7th October, a week after they need to renew their ATOL licence and the application to the court does not say they are insolvent, which may be a reason for the insurers not to pay.
Right now, if you have a booking, do nothing, there is certainly no point in cancelling and losing money but if you are thinking of booking, think very carefully indeed....it might be worth waiting 2 weeks until the crisis in over0
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