UK’s CAA seeks advise on Thomas Cook’s financial problems: report

The UK’s Civil Aviation Authority has reportedly hired US turnaround and restructuring firm Alvarez & Marsal to advise it over Thomas Cook.

According to a report filed by the Sunday Telegraph, the Authority has taken this decision over concerns surrounding the tour operator’s ability to pay a customer- protection bond and fulfill its obligations on aircraft safety should the financial strength of the company worsen.

Late last month Thomas Cook Group reached agreement with its banking group to provide it with a new facility that significantly improves the “robustness” of the group’s financial position. The group’s banks, led by Barclays, HSBC, RBS and UniCredit, agreed to provide a new £200m facility available until 30 April 2013, which replaces the £100m short-term facility finalised in October. In addition, they agreed on a further relaxation of the financial covenants under the existing facilities.