Holiday giant Thomas Cook Group has postponed disclosing its full-year results while it discusses easing a financial burden with its lending banks.
The company said that "deterioration of trading" in parts of its business during the current quarter, as well as its cash and liquidity, have prompted talks with its main lenders.
Thomas Cook said the discussions come ahead of the low cash cycle in its seasonal business.
"While the company currently remains in compliance with its financing covenants, it also intends to seek agreement from its lending banks to adjustments that will improve its resilience if trading conditions remain difficult," it added.
It said it will delay announcing full-year results until the discussions conclude, but said it expects to report "a headline operating profit" which is "broadly in line with previous guidance" for the year ending 30 September 2011.
The company had expected to give preliminary figures for the full year on 24 November.
Thomas Cook had disclosed in October that it had agreed with its banking group to amend the terms of its bank facilities to give the company "flexibility" and signed a short-term facility to provide "headroom" around the cash low-point at the end of December.
It has a fleet of around 90 aircraft operating for Germany's Condor and Thomas Cook Airlines' UK, Scandinavian and Belgian carrier divisions.
Source: Air Transport Intelligence news
