LONDON: Britain’s Thomas Cook Group Plc has approached the UK government for a bailout in an attempt to save itself from collapse after its lenders threatened to pull out of a proposed rescue deal, the Financial Times reported late on Friday.
The move comes after the British travel firm’s stakeholders requested an extra £200 million (US$250 million) in talks to finalise the restructuring plan.
The company was locked in talks with “multiple” potential investors, including the government to provide the additional £200 million, the FT reported, citing two people briefed on the situation.
The last-minute demand for the additional funding puts the £900 million recapitalisation plan agreed by the company with its Chinese shareholder Fosun last month at risk, the company had earlier said on Friday.
Thomas Cook, one of the world’s oldest holiday companies, could leave hundreds of thousands of holidaymakers stranded if it fails to find funds.
Thomas Cook did not immediately respond to Reuters’ request for comment.