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Tour operator Thomas Cook (LON:TCG) shares dropped by 18%, to 7.91p, on news that its shareholders will be further diluted as part of the company’s planned recapitalisation.
As part of the updated deal, a further £150 million will be injected into the tour operator, in addition to the £750 million which had already been announced. Furthermore, a significant amount of the group’s external bank debt (£650 million) and bond debt (€1.15 billion) will be converted into equity.
Subject to conditions, the implementation of the recapitalisation is expected to take place in early October 2019.