So let me get this right, some of you had few problems with the thread regarding MYT and some of the total C*** that was posted there. However, suddenly some of you want to take the moral high ground! No one wants to hear of any company in trouble but let’s get a little perspective shall we ladies and gentlemen. MYT have been hounded both here and in the press for owing a lot less money than TUI appear to owe!
Seems to me if these figures are correct then TUI has more debt than equity, which puts it in no better and perhaps an even worse position than MYT. Making the distinction between Thompson and TUI is rather pointless as TUI is a vertically integrated company, just like MYT. Many parts of the MYT group made a profit last year and have been put under threat just the same.
I really hope both TUI and MYT publish some good figures this month and we all have a good summer!
Out of interest this report makes interesting reading!
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Mon 27 Jan 2003
The Business raises TUI refinancing concerns
The Business reports that TUI AG is running into ‘increasing liquidity problems’ which could force it to ask majority shareholder WestLB for emergency funds.
The news comes after TUI AG’s 2002 update last week. A profits warning and its refusal to make a 2003 forecast led to shares dropping by 16% in Germany over the week.
Thomsons is also rumoured to have suffered the slowest start of the UK major tour operators, with The Business reporting that Thomson is currently 30% down on last year.
The paper reports that TUI AG’s net debt is €4bn, with off-balance sheet liabilities of €6bn. Market cap currently stands at €2.3bn. A €2bn loan, due this April, will be repayed from non-core disposals, but a €550m convertible bond which will need refinancing next year is causing most concern.
The bond is set to convert into TUI shares at €64.48 – the shares are currently trading at €12.88.
The Business mentions that ‘a similar convertible bond was one of the factors that worsened the troubles of MyTravel’
. WestLB, which owns 32% of TUI AG, declined to comment, while TUI AG is refusing to comment in the run-up to its May FYs.
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Can I also ask why this thread was moved? And why there appears to have been an attempt to censor comments about TUI but not MYT on this site? At least not when it mattered!
Last edited by kinsman; 2nd May 2003 at 07:34.