Numerous UK banks are set to agree a deal to restructure the £1.2 billion ($1.9 billion) in loans held by embattled travel operator Thomas Cook, it has emerged.
The company has announced today (10 April) it is close to finalising an extension on the money it owes to 17 separate financiers, including Barclays and the Royal Bank of Scotland.
This would mean the repayment deadline of the loans would be pushed back by two years from 2013 to 2015, therefore allowing the struggling firm extra breathing space in the wake of the recession.
In a statement, Thomas Cook - which employs around 18,000 people in-season - confirmed it is now in "advanced discussions" with its creditors about this matter.
Furthermore, on top of its debt refinancing efforts, the company also indicated it would be trying to raise money over the coming months by "exploring a possible sale and leaseback of certain aircraft".
By Claire Archer