We had been negative on the bonds early on and had not been fans of the business model, which has seen too much of its value added replicated by nimbler online competitors to cope with its vast capital
Read MoreBusiness at the company has gone from bad to worse this summer and the fresh cash needed has kept rising, including an additional £200m requested earlier this month.
Read MoreSarria view: Remain positive on the Casino debt structure and the potential asset sales confirms Casino’s wish to de-lever and improve liquidity at Casino level.
Following press speculation in
Read MoreWe have been oscillating over this issue when it emerged that the SoA would only be used to set the voting thresholds lower.
As per our initial deliberations, the CH15 filing
Read MoreThomas Cook applied to the Courts on Friday 30th August, with previously unreleased details emerging. Below is further detail. We will send a restructuring model and recovery calculations tomorrow.
Read Morefurther to our email this morning: CDS is ultimately still set to be triggered.
- Contrary to our initial assessment, the primary motivation for merely changing the voting threshold via the schemes is not to avoid a trigger under the CDS
Read MoreSome important detail in the fine-print of TCG’s Skeleton Argument filed with the court:
CDS: The news that the court approved the schemes to proceed on 18th of Spetember were not overly spectacular. However,
Read MoreThoughts:
- Really the only news is a more precise announcement of the Equity split between Fosun and creditors across the two businesses. The impact is
Read MoreThomas Cook released a short RNS this morning, stating negotiations are continuing and are in discussions with 50% of the bondholders. It appears that the Company
Read MoreThomas Cook are reportedly seeking another £150m on top of the £750m already announced.
Interestingly, Fosun’s share of investment under the
Read MoreOn the Beach Group have issued a trading Update this morning with profit warning for FY19 due to currency headwinds from Sterling weakness. This is not new news but acknowledgment
Read MoreNeset Kockar - Turkish hotelier and tourism airline operator is aggressively buying Thomas Cook shares. He crossed the 5% threshold last night and is now at 6.7%.
Tomas believes
Read MoreThis should further highlight the desire of creditors to keep TCG as one Group in the immediate future. Fosun will want to carve out the Tour Operator for their capital injection but creditors should remain
Read MoreHaving done further work on TCG’s legal structure last week, we have come to the conclusion that under the current terms including Fosun, a restructuring will likely trigger CDS after all.
Intermediate holdings:
Read MoreWhether or not 2019 CDS will be triggered may not so much depend on ‘when' the company restructures, but ‘how'.
Further to a note from GS this morning, we think some of the points have merit:
Read MoreWe have been playing with a model on TCG to simulate the split between the two segments and allocate cash injections, write downs, shares and recoveries.
Read MoreThe expected:
TCG have given a statement according to which summer tour bookings are down -9% and airline sales down -3%, despite a price rise of 2%.
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