Chinese investment giant Fosun, Thomas Cook’s largest shareholder, on Friday reassured City investors that the collapse of the tour operator will have a “limited” impact on its business.
Fosun, the firm behind Club Med, held a 18.6% stake in Thomas Cook, which collapsed this week under a massive debt pile, with 9000 UK jobs lost.
Hong Kong-listed Fosun sought to reassure top shareholders like Norges Bank and Goldman Sachs saying the hit would be minimal after reports had speculated on its losses. Shares rose 1% from HK$9.89 to HK$9.99.
The firm is a division of billionaire Guo Guangchang’s empire.
Fosun said that as at June 30 its holding was worth just £37.6 million, saying: “Therefore, the application for compulsory liquidation of Thomas Cook has limited financial impact.”
It added: “The group has never provided any guarantee to Thomas Cook and has not made any investment in relation to the possible recapitalisation of Thomas Cook."
The travel company last week had talks with banks and creditors to renegotiate its £1.7 billion debt pile.
It was trying to persuade them to accept a complicated restructuring that would involve wiping out the debt and injecting a further £900 million.
Banks were close to accepting that offer but at the last minute demanded a further £200 million “stand-by facility” in case its woes worsened.
Thomas Cook failed at the start of the week after it was unable to produce a funding lifeline, leaving some 150000 UK holidaymakers stranded. The Civil Aviation Authority today said it has now flown a total of 61,000 back to Britain.
The failure of the 178-year-old tour operator, which was faced with increased competition and weaker demand, is set to hurt scores of firms.
Credit card companies and third-party tourist operators will have to compensate customers. Although insurance may be in place, firms could be put under strain while they wait for claims to be processed and paid.
Meanwhile Thomas Cook has 3000 hotels it uses, with many yet to send invoices. Some smaller hoteliers may not survive while they wait for payouts.
