Thomas Cook Group files for US bankruptcy protection to smooth Fosun recapitalisation process

18 September, 2019

Thomas Cook Group, via its American lawyers Latham & Watkins, applied for bankruptcy protection in the Southern District of New York as part of the group's wider debt restructuring programme (Bloomberg, 17-Sep-2019). Chapter 15 of US bankruptcy law protects foreign companies from legal action by American creditors while they restructure in another country. As previously reported by CAPA, Thomas Cook's proposed recapitalisation will take place on the 27-Sep-2019 and 30-Sep-2019, with China's Fosun Tourism Group to acquire at least 75% equity in the group tour operator and 25% equity in the group airline.