UK lending banks to reach deal with Thomas Cook

30 September 2011

UK lending banks look set to reach an agreement with Thomas Cook over the criteria used to test the company's financial health, which is due to be assessed in December this year.

Speaking to Reuters, finance director at Thomas Cook Paul Hollingworth explained the firm is hoping to secure a deal with the lenders by the end of October.

The industry figure observed: "If things are getting tighter what we should do is build back that confidence. We're in very constructive talks with the banks."

Mr Hollingworth stated there is no expectation that the organisation might reinstate dividends in the short term, noting this will only take place once the balance sheet has been rebuilt.

In addition, the employee said it is unlikely the business - which has roots stretching back to 1841 - will have a permanent chief executive officer in place prior to the beginning of 2012.

By Claire Archer

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