Shares in Thomas Cook dropped to 7p in early trading after the group confirmed it was seeking an additional £150m of funding on top of the £750m bailout with Fosun and the banks.
On Monday Thomas Cook confirmed to the stock market it was in talks with bondholders to secure the additional cash and said a debt-for-equity swap would result in existing shareholders being “significantly diluted”.
Thomas Cook shares via Google
It said shareholders “may be given the opportunity to participate in the recapitalisation on terms to be agreed between, among others, the company, Fosun, and the converting financial creditors”.
Shares stood at 7p on Tuesday morning giving the group a market value of £120.5m.
The plan to recapitalise Thomas Cook would see Thomas Cook’s creditors take control of its airline and a minority stake in its tour operator in a debt-for-equity swap, while Fosun acquires the travel group and a minority stake in the carrier.
The group is hoping the deal will be finalised in September.
More: Thomas Cook ‘seeks further £150m’
Thomas Cook in £750m rescue deal with Fosun
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