Thomas Cook Group, Europe’s second-largest tour operator, said Tuesday that it is in talks with lenders to amend loan terms, an announcement that sent its stock price spiraling.
The London-based company’s share price on the London Stock Exchange, which has already taken a beating this year, fell 75% on Tuesday to around 10 pence (about 16 cents).
Thomas Cook said there has been a “deterioration” in some areas of its business in the current quarter.
“While the company currently remains in compliance with its financing covenants, it also intends to seek agreement from its lending banks to adjustments that will improve its resilience if trading conditions remain difficult,” Thomas Cook said in a statement.
According to reports, Thomas Cook’s debt was about 900 million British pounds (approximately $1.4 billion) at the end of September.