Skip to content
Subscriber Only
Markets
Deals

Chinese Conglomerate Considers $940 Million Rescue of Debt-Strapped Thomas Cook

  • Recapitalization by Chinese firm includes debt-for-equity swap
  • Bonds gain, but shares hit all-time low on dilution concern
Updated on

Thomas Cook Group Plc’s bonds rallied but its shares fell after China’s Fosun Group said it may help fund a 750 million-pound ($940 million) rescue of the ailing British travel firm that would heavily dilute its stock.

The deal will give Cook’s biggest investor control of the U.K. company’s tour operations and a minority stake in its airline, the sale of which will be put on hold, while swapping debt for equity and issuing new shares, Fosun Tourism Group said in a statement Friday.