HOLIDAYS giant Thomas Cook boosted its flagging share price by announcing a new short-term loan deal with its banks.
The arrangement will provide Thomas Cook with an extra £100m of “headroom” for its seasonal cash low point of December and January. It has also amended the terms of its bank facilities to increase flexibility.
The moves came as a relief to investors after three profits warnings in a year and the departure of its chief executive heaped pressure on the firm.
Thomas Cook has already confirmed that it is scrapping its dividend to shareholders while it works to bolster its balance sheet and reduce debts of about £900m.
Its shares closed up by 5.95p at 51.5p yesterday.