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  • FIRST POST
    • worldtraveller
    • By worldtraveller 15th Sep 19, 4:47 PM
    • 12,930Posts
    • 28,013Thanks
    worldtraveller
    0 WOW
    Thomas Cook Ceases Trading - Compulsory Liquidation (EDIT MON 23/9)
    • #1
    • 15th Sep 19, 4:47 PM
    0 WOW
    Thomas Cook Ceases Trading - Compulsory Liquidation (EDIT MON 23/9) 15th Sep 19 at 4:47 PM
    The beleaguered travel firm Thomas Cook will on Monday request a delay to a key bondholders’ meeting on Wednesday to try to maximise the chances of securing a £1.1bn emergency rescue package to help stave off imminent financial collapse.

    The company is involved in 11th-hour talks as it seeks to finalise the terms of the proposed restructuring agreement with the Chinese conglomerate Fosun, its lenders and bondholders.

    “We gather they will be applying for a bit of breathing or wriggle room in order to try to get the deal through,” an industry source said.

    The Guardian
    Last edited by worldtraveller; 23-09-2019 at 2:44 AM. Reason: Change in status of Thomas Cook
    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...
Page 1
    • Browntoa
    • By Browntoa 15th Sep 19, 4:54 PM
    • 35,632 Posts
    • 41,783 Thanks
    Browntoa
    • #2
    • 15th Sep 19, 4:54 PM
    • #2
    • 15th Sep 19, 4:54 PM
    Some bond holders profit if it fails , speculators been buying them up
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's , Boost your income and Discount Code boards which means I volunteer to help get your forum questions answered and keep the forum runnning smoothly .However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to forumteam@moneysavingexpert.com Any views are mine and not the official line of MoneySavingExpert.
    • bobblebob
    • By bobblebob 15th Sep 19, 6:31 PM
    • 657 Posts
    • 116 Thanks
    bobblebob
    • #3
    • 15th Sep 19, 6:31 PM
    • #3
    • 15th Sep 19, 6:31 PM
    Is there a chance they could go under? Just booked a holiday with them
    • worldtraveller
    • By worldtraveller 16th Sep 19, 5:21 AM
    • 12,930 Posts
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    worldtraveller
    • #4
    • 16th Sep 19, 5:21 AM
    • #4
    • 16th Sep 19, 5:21 AM
    According to The Telegraph, Thomas Cook has now secured an extra week to hammer out a rescue deal. A meeting had been scheduled for Wednesday to agree terms but is set to be pushed back until next week.
    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...
    • candygirl
    • By candygirl 16th Sep 19, 1:07 PM
    • 27,563 Posts
    • 117,434 Thanks
    candygirl
    • #5
    • 16th Sep 19, 1:07 PM
    • #5
    • 16th Sep 19, 1:07 PM
    Is there a chance they could go under? Just booked a holiday with them
    Originally posted by bobblebob
    I've got a flight to India, booked with them in Nov
    "You can't stop the waves, but you can learn to surf"

    (Kabat-Zinn 2004)
    • Grezz24
    • By Grezz24 16th Sep 19, 1:31 PM
    • 228 Posts
    • 332 Thanks
    Grezz24
    • #6
    • 16th Sep 19, 1:31 PM
    • #6
    • 16th Sep 19, 1:31 PM
    we have a family holiday booked with them and due to leave on the 27th this month! so doesnt leave long to sort anything out should they go under.

    I believe as we have ATOL protection we would get a refund but then its a rush to find somewhere else to go
    • Ganga
    • By Ganga 16th Sep 19, 3:15 PM
    • 1,806 Posts
    • 1,035 Thanks
    Ganga
    • #7
    • 16th Sep 19, 3:15 PM
    • #7
    • 16th Sep 19, 3:15 PM
    We are booked to go away with them next month,its a TUI holiday but they use TC flights,not worried as " they have been in trouble " for a while and still going.
    ITS NOT EASY TO GET EVERYTHING WRONG ,I HAVE TO WORK HARD TO DO IT!
    • richardw
    • By richardw 16th Sep 19, 6:17 PM
    • 19,058 Posts
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    richardw
    • #8
    • 16th Sep 19, 6:17 PM
    • #8
    • 16th Sep 19, 6:17 PM
    Was the Monarch story similar?
    Posts are not advice and must not be relied upon.
    • Alan Bowen
    • By Alan Bowen 16th Sep 19, 6:50 PM
    • 3,358 Posts
    • 1,702 Thanks
    Alan Bowen
    • #9
    • 16th Sep 19, 6:50 PM
    • #9
    • 16th Sep 19, 6:50 PM
    Although I have always warned against panic in relation to TC, things are certainly becoming more uncertain. All packages with air travel are ATOL protected. If anything happens, the CAA will arrange a flight home or tell you how to claim a refund if you have yet to travel.

    TC decided not to protect their flight only sales by ATOL so if you have just booked a flight on Thomas Cook Airlines then the CAA cannot help, although when Monarch failed the CAA were ordered to repatriate everyone as it clashed with the opening day of the Conservative Party Conference and they wanted that to be the TV headlines, not voters stranded across Europe. For those who believe in fate, the day when TC have to renew their ATOL licence is October 1st which I have just discovered is in the middle of the Conservative Party Conference again this year but TC is much much bigger than Monarch and I wouldn't hold up hope that the same will happen again.

    If you booked your flight with a debit card then the card issuer should offer a refund, if you used a credit card you are better protected, as they will, often reluctantly, cover the cost of alternative flights, which will probably be a lot more.

    However, let us just hope that everything works out in the next 10 days and we can all breathe again!
    • leylandsunaddict
    • By leylandsunaddict 16th Sep 19, 11:56 PM
    • 1,707 Posts
    • 1,202 Thanks
    leylandsunaddict
    [QUOTE] TC decided not to protect their flight only sales by ATOL so if you have just booked a flight on Thomas Cook Airlines then the CAA cannot help, /QUOTE]

    Airlines don't hold Atols. The CAA only insist they do if there are circumstances to suggest it is needed. Anyone that has booked flight only should have SAFI or supplier insolvency as part of their travel insurance.
    • Nicklyn
    • By Nicklyn 17th Sep 19, 7:08 AM
    • 2 Posts
    • 0 Thanks
    Nicklyn
    Hi,
    Seeking a little advise about the Thomas Cook situation. I have booked a package holiday with Thomas Cook to The Gambia in January of next year. Currently I have paid approximately £500 deposit and the final payment of £1,668 is due on October 1st 2019. I know I am covered by ATOL, howeverin my experience any refund would take weeks, maybe months to come through. So do I make the final payment and risk TC going under where I would have the situation of getting a refund eventually but having two weeks off in January and not being able to afford to go anywhere. Or do I cut my losses and use the money I have for the final payment to find another holiday. Any good advice is gratefully received. Thank you.
    • Alan Bowen
    • By Alan Bowen 17th Sep 19, 7:14 AM
    • 3,358 Posts
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    Alan Bowen
    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.
    • richardw
    • By richardw 17th Sep 19, 7:18 AM
    • 19,058 Posts
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    richardw
    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.
    • bobblebob
    • By bobblebob 17th Sep 19, 11:20 AM
    • 657 Posts
    • 116 Thanks
    bobblebob
    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.
    • up-north-eng
    • By up-north-eng 17th Sep 19, 11:53 AM
    • 37 Posts
    • 8 Thanks
    up-north-eng
    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 ��
    • Nicklyn
    • By Nicklyn 17th Sep 19, 1:39 PM
    • 2 Posts
    • 0 Thanks
    Nicklyn
    Many thanks to all the replies. I think I will follow advice and wait and see what happens next week.
    • Alan Bowen
    • By Alan Bowen 17th Sep 19, 1:56 PM
    • 3,358 Posts
    • 1,702 Thanks
    Alan Bowen
    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 holiday
    • bobblebob
    • By bobblebob 17th Sep 19, 2:32 PM
    • 657 Posts
    • 116 Thanks
    bobblebob
    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?
    • Alan Bowen
    • By Alan Bowen 17th Sep 19, 5:01 PM
    • 3,358 Posts
    • 1,702 Thanks
    Alan Bowen
    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 try
    • worldtraveller
    • By worldtraveller 18th Sep 19, 6:22 AM
    • 12,930 Posts
    • 28,013 Thanks
    worldtraveller
    Thomas Cook files for Chapter 15 bankruptcy protection in USA
    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.
    Last edited by worldtraveller; 18-09-2019 at 6:26 AM.
    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...
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