Thomas Cook turnaround plan receives shareholders nod
Tour operator Thomas Cook has received shareholder backing to sell and take back on lease part of its aircraft fleet and dispose off five of its Spanish hotels, two key cost-saving measures that the struggling company warned were crucial for its survival.
The company got almost full support with 99.99 per cent shareholders backing the twin proposals by proxy votes.
At the general meeting called Tuesday to ratify the decision to sell the company's interest in HCV to Iberostar, and the company's aircraft sale and leaseback agreements with Guggenheim Aviation Partners LLC and Aircastle Advisor (International) Limited received near unanimous support.
At an investors meeting held here, senior independent director Roger Burnell assured that the move was 'in the best interests of shareholders' as the failure to support the fundraising move could have jeopardized the company's recent 1.4billion pounds deal with lenders, including Royal Bank of Scotland and Barclays, to extend the maturity of its bank loans till 2015.
Major stakeholders including fund manager Invesco, Standard Life and Marathon had previously expressed support for the resolutions.
The cash-strapped company can now concentrate on executing its recovery plan under new Chief Executive Officer, Harriet Green, who joined the company last week from electronic components supplier Premier Farnell.
Thomas Cook, which has already revealed losses of 262.7 million pounds due to a particularly bad run in North America and France, was plunged into crisis in November after it went back to its lenders to ask for an additional 100 million pounds lifeline.
The group's turnaround plan for the UK operations includes focusing on fewer and better-quality hotels and a drive for more online bookings.
Source:Europe News.Net
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