Thomas Cook Ceases Trading - Compulsory Liquidation (EDIT MON 23/9)

Alan_Bowen wrote: »

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 over

I also have mixed feelings as to whether this is good news or not.

I guess the TC powers that be think this is the right and positive course of action but the ramifications seem scary. Could this be the removal of the finger that has been for long wedged in the dam holding back a calamity?

I would imagine that following this new development there will be a lot of very jumpy hoteliers, ground agents, coach suppliers and others overseas now concerned as to whether they will be paid as the summer season draws to a close and looking to get what they can, now. US side, will the likes of Disney and Universal continue to allow TC credit for those TC guests in-house or due to shortly arrive on vacation - or start to charge guest credit cards? I also cannot see the Spanish, Greek and Turkish hoteliers reaction well to the news.

Hopefully something positive comes from Fosun in coming hours/day to quell concerns of TC customers and suppliers.

The meeting today is a committee meeting to determine whether the Chapter 15 proceedings are sufficient to trigger an insurance payout to the bondholders, if they say yes and the bondholders can be certain of being paid out, then they are likely to vote in favour of the deal, and we can all breathe again. If they do not agree there should be an insurance claim, TC has 7 days to find a plan B.......

Marshybeans, at this no one can give any guarantees. However things are moving quickly and your answer, hopefully, a positive one, should be known within 14 days at most

marshybeans wrote: »

I've booked a holiday in December to New York, flights are with Virgin and everything has been paid for. Is the holiday still safe, regardless do your reckon?

Sounds like a Thomas Cook Holiday / Thomas Cook Signature Package. You should have received an ATOL certificate shortly after booking. ATOL Protection ensures your holiday payment is protected and would be refunded if the worst was to happen. Hopefully however all will be fine.

Alan_Bowen wrote: »

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

Alan_Bowen wrote: »

The meeting today to decide whether the insurers should protect the bondholders and thereby improve the chances of TC surviving reached no conclusion at all and is reconvening on Monday at 12 noon. Let's keep our fingers crossed

Might not last until Monday

One stakeholder said that it was "a critical 24 hours" for Thomas Cook's survival prospects.




A successful outcome from the labyrinth of negotiations remains possible, although they cautioned that without imminent assurances that the additional funding is forthcoming, parts or all of Thomas Cook faced being placed into administration within the next few days.