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Thomas Cook files bankruptcy, half a million stranded

Ahmed Aiham
23 September 2019, MVT 12:20
The company's bankruptcy stranded over 600,000 people, which includes over 150,000 British nationals. PHOTO: THE SUN.CO.UK
Ahmed Aiham
23 September 2019, MVT 12:20

The United Kingdom (UK)-based tour operator 'Thomas Cook', declared bankruptcy, stranding over half a million clients across the world.

The company's bankruptcy stranded over 600,000 people, which includes over 150,000 British nationals. UK's Secretary of State for Foreign and Commonwealth Affairs Dominic Raab, declared the country's intention to fly British holidaymakers back, should the Thomas Cook collapse.

Thomas Cook needs over USD 1.3 billion in refinancing to ensure the continuation of the company. While it has secured an approximate USD 1.1 billion from Chinese company Fosum Tourism Group, creditors demanded an additional USD 249 million from the company.

According to BBC, Thomas Cook scrambled to secure the funds to pay off its lenders. However, reports reveal the attempt proved unsuccessful.

A large number of holiday-goers took to social media, revealing that hotels were barring their departure based on funds owed by Thomas Cook. Certain hotels are also demanding remuneration from the visitors in light of the bankruptcy.

The company employs over 22,000 staff globally, out of which 9,000 are British.

Established in 1841 and considered one of the largest travel companies in the world, Thomas Cook generates roughly USD 10 billion in annual sales and serves 19 million customers every year, including visitors to Maldives and 15 additional countries.

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