New York, NY -- (SBWIRE) -- 05/29/2013 -- Many clients of Perry Mandera Chicago businessman and coach have used Thomas Cook’s services over the years; the company existed for more than a century, and is known as one of the world’s largest tour operators. Perry Mandera coach customers were therefore very surprised to learn that Thomas Cook has been experiencing some serious financial difficulties. A recent announcement from the organisation revealed that it is set to raise over £425 million, as part of its refinancing plan. The organisation has been struggling with debt for several years now, and it is hoped that this plan will help it to resume its dividend payments to its shareholders and repay some of its debts. The chief executive of the organisation, Harriet Green, explained that this refinancing operation is a significant step in the right direction for the tour operator.
The funds are to be raised by a discounted rights issue that is to be underwritten by Jeffries Hoare Govett and Credit Suisse. The refinancing plan will also include raising an additional £441 million via the issuing of new bonds which will mature in seven years’ time. Clients of Perry Mandera entrepreneur read that this deal will help Thomas Cook to dramatically reduce its debts, and furthermore, will help to set up a platform that should ultimately result in the shareholders getting dividend payments.
The announcement of the refinancing plan was made along with the organisation’s 6-month results, in which it was revealed that it has managed to cut its losses (pre-tax) down to £390.90 million – this is a drop of £304 million from the previous months. The tour operator’s net debt has also been reduced, going from £1.4 billion to £1.2 billion in the space of just one year. It was also announced that as part of its cost cutting measures, Thomas Cook would be eliminating at least 2,500 jobs in the United Kingdom, and will be shutting down a minimum of 195 of its shops on the high street.
Clients of Perry Mandera professional businessman also read that the organisation will be increasing its savings targets; initially, Thomas Cook had planned to save £40million over the next two years, but this figure has now risen to £390million, as Green expects there to a significant increase in sales. She added that Thomas Cook is now not only recovering from its financial woes, but is beginning to thrive, as the refinancing plan is starting to transform the organisation’s balance sheet.
About Thomas Cook
Thomas Cook is in the process of creating a refinancing plan, which will help it to raise several hundred million pounds. With this money, it is hoped that the tour operator will be able to get out of debt and reduce its losses.
Name: Kevin Gumther
Location: New York, New York