Fosun Tourism, its banks and a majority of its bondholders have launched a rescue deal for the troubled travel firm Thomas Cook.
The new deal will see the Chinese group, which is already a major stakeholder in the travel company, take control of the business, much at the expense of other shareholding investors. Fosun will plough £450 million in to Thomas Cook for 75% of the tour business' as well as 25% of the group's airline business.
This deal is bad news for all other investors in the firm as its means a significant dilution in their shareholdings, the company said, but that it had decided it was the best way to secure the future of the group for all its stakeholders. "It means the oldest brand in travel will continue to deliver good-value travel," said Simon Calder, travel editor at the Independent. "A lot of uncertainty that people have, including staff, will be settled by this deal.
"But it begs the question - is Thomas Cook going to be able to differentiate itself sufficiently and be able to deliver exciting experiences and good value?"
Fosun is already Thomas Cook's largest shareholder. It also owns the Club Med holiday business and Wolverhampton Wanderers Football Club.
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