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Old 22nd Nov 2011, 09:12
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uklad007
 
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It doesnt sound good (I think they have an $800mn credit facility and a $100mn+ loan as per news reports).
At $122mn market cap it does seem small but i cant see who would come in and buy it as they have to take on the debt.
One news report talked of a collapse of bookings in France, Belgium and Russia (another talked of Egypt crisis is to blame on low winter bookings).
It would be interesting to understand how the UK/Germany is doing - surely its two biggest markets and Scandinavia too - also what impact the recent merging of its uk retail business with Co-op had on its debt pile.
I just cant see it being bought out fully (maybe they may sell of some group companies or pull out of a market) and i cant see it going under, companies often extend / re-negotiate their debt but i do see some sort of restructuring needed to its operations - hopefully with minimal impact on the hardworking employees
I think TUI's shares also dropped in value due to Thomas Cooks dropping today too.
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