Europe's second biggest tour operator Thomas Cook said on Tuesday it had entered fresh talks with its banks over the terms of its borrowing following a further deterioration in its trading and cash position.
Thomas Cook, which issued a string of profit warnings leading to the departure of its chief executive in August, had struck a deal with its banks in October to relax the terms of its lending but has asked them to consider a further amendment after trading continued to decline.
The company is in discussions with its principal lending banks with regards to its facilities during the seasonal low period of cash in the business, Thomas Cook said.
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 it would delay publication of its full-year results, originally due on Thursday, until the discussions are concluded. It said it expected its full-year operating profit to be in line with previous guidance.
(Reporting by Matt Scuffham; editing by Rhys Jones)