By Marcus Leach
Thomas Cook saw their shares plummet 65% after it announced it was in talks with banks about increasing the amount of money it can borrow.
"Thomas Cook Group plc announces that as a result of deterioration of trading in some areas of the business in the current quarter, and of its cash and liquidity position since its year end, the Company is in discussions with its principal lending banks with regard to its facilities during the seasonal low period of cash in the business," a statement from the firm said.
"While the Company currently remains in compliance with its financing covenants, it also intends to seek agreement from its lending banks to adjustments that will improve its resilience if trading conditions remain difficult.
"As a result, the Company will delay its announcement of its full year results until these discussions are concluded. The Company expects to report a headline operating profit for the year ended 30 September 2011 broadly in line with previous guidance."
Only last month the travel firm announced a new finance package that saw them secure £100 million credit agreement with its bankers. However, it is now believed they are seeking a further £100 million.
"We have all the protection in place as any other travel company and they (the customers) should not worry," Thomas Cook chief executive Sam Weihagen said.
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