Shares in British holiday company Thomas Cook Group slumped by more than 70% yesterday after the struggling tour operator admitted it was in urgent talks with bankers to raise a further US $156 million (£100million) - just one month after it asked its lenders for £100 million.
Sam Weihagen, interim chief executive, Thomas Cook said trading since the the group's end of year in September had been worse than expected, putting pressure on cash flow. He blamed the eurozone crisis and a sluggish recovery in tourism to the Middle East and north Africa due to the Arab Spring.
Thomas Cook has 1,300 travel shops in the UK and employs 30,000 people. The latest set of talks with its banks follow a terrible year for the tour operator, which has issued three profit warnings since January and seen the departure of several senior executives, including Manny Fontenla-Novoa, its chief executive of 11 years.
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