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Thomas Cook sells off more assets
Tuesday December 13th 2011
Travel company Thomas Cook is continuing its pledge to offload assets worth £200 million by selling a stake in five hotels and a golf club in Spain.
The debt-laden company, which has sold the assets to Iberostar, will still have access to the portfolio of properties as part of a commercial agreement.
Thomas Cook, which is due to present delayed annual results, is selling the hotels and golf club for 72.2 million euros (£61.4 million).
The deal will reduce the company's borrowings by 94.6 million euros (£80 million) due to the hotels being sold with net debt of 22.4 million euros (£19 million).
The transaction, which will tackle Thomas Cook's net debt, demonstrates "our ongoing commitment to strengthen the balance sheet", according to chief executive Sam Weihagen.
However it is believed that the loss of up to 1,000 jobs could be announced on Wednesday, as the company closes 200 of its 1,100 travel shops.
Copyright © Press Association 2011
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