May 15 British tour operator Thomas Cook Group
Plc will announce plans to raise about 400 million
pounds ($609 million) through a placing and rights issue on
Thursday, according to two travel industry sources.
The company will also say it has agreed to new long-term
banking facilities, the sources said.
Thomas Cook could also publish results for the six months
ended March on Thursday, according to the sources. The company
had previously said it would report first half results during
May but has yet to give a date.
The story was first published by Sky News earlier on
The fundraising will help the company reduce its debt and
support its ongoing efforts to restructure its finances.
Thomas Cook had said earlier that it reduced debt by 86
million pounds to 1.56 billion pounds over the last year and
that it would cut 2,500 UK jobs and close 195 stores in Britain.
It also said that it expected to cut costs by a further 60
million pounds this year.
The 172-year-old group has struggled over the last two years
with a slump in sales that has forced it to renegotiate bank
loans and sell off planes and retail outlets to lighten its debt
Thomas Cook declined to comment on the matter.