Thomas Cook is reported to have secured an extra week to agree a £1.1 billion rescue package as debt speculators exert pressure on the travel giant.
A meeting had been scheduled for Wednesday to agree terms but is set to be pushed back until next week.
The rescue deal led by Chinese Club Med owner Fosun needs the support of 75% of creditors to go ahead.
Under the proposed terms, Fosun, which owns 18% of Thomas Cook, will control 75% of the company’s tour operating business and up to 25% of its airline in exchange for a £450 million capital injection.
Podcast: Thomas Cook rescue deal
Debt holders and lending banks have agreed to put up the remaining £450 million in exchange for control of Thomas Cook’s airline and up to 25% of the tour operator.
Thomas Cook is likely to move to gain more time to conclude negotiations by appealing to a court to push back the meeting of bondholders that had been arranged for Wednesday, the Financial Times reported.
The firm’s Atol is due for renewal on October 1.
Concerns about the health of Thomas Cook have caused it shares to collapse to just 5p, valuing the business at £77 million, compared with £2 billion less than two years ago.
The company said in a statement: “We announced on 28 August that we have reached substantial agreement with Fosun and our creditors regarding key commercial terms of the recapitalisation of Thomas Cook.
“We remain focused on completing the transaction.”
An insider was reported by the Daily Telegraph as saying: “There is a deal to be done here, it’s just a case of getting everyone to understand what’s at stake.”
The Civil Aviation Authority declined to comment directly on Thomas Cook.
“We are in regular contact with all large Atol holders and constantly monitor company performance. We do not comment on the financial situation of the individual businesses we regulate,” the regulator told the BBC.
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