Thomas Cook Group

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What's going on with Thomas Cook, which is trying to undergo a restructuring in a deal which needs the backing of three quarters of bondholders to succeed?

Sonja Laud, chief Investment Officer, Legal & General Investment Management told Radio 5 Live's Wake Up To Money about the complex trades going on in the bond markets.

"What the hedge funds have been doing is they have used an instrument called credit default swaps which allows them to have a share greater than 25% to block it because they want to be paid in any case".

"Normally credit default swaps pay you in the event of default so if we achieve a 'going concern' then this would not signify a default".

BBC

As we approach the close of the London stock market, shares in Thomas Cook are still down more than 20%.

That's after the company said its shareholders will be diluted by its restructuring plans.

As the chart shows, the shares have fallen a long way over the last five years.

Shares in Thomas Cook tumbled by 25% to 7.3p after it admitted that its increased capital raising plan will dilute existing shareholders' stakes.

PA Media

Travel company Thomas Cook has said it is in talks with creditors over the injection of an extra £150m, on top of the £750m already announced.

The firm says it has made "significant progress" in finalising the key terms of a cash injection from its largest shareholder, China's Fosun, and creditors, which it announced last month.

The cash is part of a deal that would see Fosun buy Thomas Cook's tour business.

Thomas Cook now says it is in discussions with noteholders over the injection of an extra £150m.

The company said the additional capital, "will provide further liquidity headroom through the coming 2019/20 winter cash low period and ensure the business can continue to invest in its strategy".

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Shares in Thomas Cook have jumped 28%, boosted by the disclosure that Nesat Kockar, founder and owner of Turkish tour operator Anex Tourism, has taken a stake in the tour operator.

As a reminder, Thomas Cook is in £750m rescue talks with banks and its largest shareholder, Fosun, which effectively would end up with control of the troubled firm.

While the 28% rise in shares sound impressive, it's only a rise of 1.7p to 7.1p.

In 2015 the shares traded at 160p.