On Friday, the company confirmed press speculation that it was seeking the extra funds, on top of an already-agreed £900mln injection of fresh capital, and that it would provide updates “in due course”.
The extra £200mln is being pushed by a consortium of banks, including Royal Bank of Scotland Group PLC (LON:RBS) and Lloyds Banking Group PLC (LON:LLOY), to ensure Thomas Cook can keep itself afloat over the winter season when holiday bookings are usually lower.
However, the firm has been left with little time to secure the extra cash before court hearings begin to approve the rescue plan next Friday.
The company’s largest shareholder, Chinese conglomerate Fosun, is stumping up £450mln for 75% of TCG’s tour operator business and 25% of its airline, while the rest of the £900mln will come from lending banks and debtholders in return for the remaining stakes, wiping out all other shareholders.
Thomas Cook had warned in an update in August that the rescue deal was expected to significantly dilute its existing shareholders and could result in its delisting from the market.
In early trading on Friday, the shares nosedived 24% to 3.4p, a far cry from a three-year high of 146.1pm which it hit in May last year.