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Thomas Cook news latest: Travel firm seeks last-minute bailout as thousands of holidaymakers face being stranded

Thomas Cook passengers could face travel chaos if the operator doesn't secure a rescue deal by Sunday: REUTERS
Thomas Cook passengers could face travel chaos if the operator doesn't secure a rescue deal by Sunday: REUTERS

Thousands of holidaymakers face being stranded abroad as Thomas Cook desperately seeks to plug a gap in its funding.

The UK’s oldest travel agent could collapse by Sunday unless it secures the extra £200m in funds needed to secure its future.

The company has around 24 hours to agree a rescue deal before it falls into administration, according to stakeholders including banks such as RBS and Lloyds.

Currently there are 600,000 Thomas Cook customers on holiday, of which 150,000 to 160,000 are British.

The travel group has been locked in talks with "multiple" potential investors, including the Government, to provide the additional £200 million, according to the Financial Times.

But while sources told the BBC there were still "reasonable prospects" of a deal being reached, others told Sky News that last-ditch plans were being ditched and the company could become insolvent “within hours”.

Thomas Cook is one of the world's largest travel companies, employing around 21,000 people (Getty Images)
Thomas Cook is one of the world's largest travel companies, employing around 21,000 people (Getty Images)

UK travellers on a package holiday are ATOL-protected - meaning the Government would be forced to launch the biggest repatriation of British citizens since World War Two, costing an estimated £600million.

But holidaymakers who are booked on flight-only packages could be stuck abroad if they don't make it home within the next 24 hours.

Already, complaints of flight cancellations and delays have emerged, with one Twitter user complaining of being "kicked out" of a Portuguese airport after his flight was suddenly axed.

The coming hours will prove crucial to the survival of the 178-year-old company, which employs around 21,000 people, including 9,000 Brits.

It was reported last night that the Government is unlikely to intervene amid concerns over the firm’s long-term stability.

"We do not speculate on the financial situation of individual businesses," the Department for Transport said.

Hopes of the operator reaching a last-minute rescue deal have begun to dwindle, according to reports (REUTERS)
Hopes of the operator reaching a last-minute rescue deal have begun to dwindle, according to reports (REUTERS)

The ailing operator hoped to seal a bailout led by China's Fosun Tourism Group this week, but the proposal was withdrawn.

The Civil Aviation Authority is on standby with a repatriation contingency plan called Operation Matterhorn. It has estimated the potential cost of bringing home passengers would be around £600m.

The CAA said it would not comment on the financial situation of individual businesses.

Founded in 1841, Thomas Cook is one of the world's largest travel companies.

But it has struggled in recent years under intense competition in popular destinations, high debt levels and an unusually hot summer in 2018 which reduced last-minute overseas bookings