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Thomas Cook Collapses

The world's oldest travel agent has gone under, as of midnight Sept. 23. With debt rumored to be $2 -3 Billion, and the British government unwilling to extend another 400 million pound loan. The government owned Chinese corporation Fosum, that owns 49% of Thomas Cook, has now laid off all employees and taken all planes and physical assets. Even the world wide 500+ booking and tour agents are shut down. Leaving anywhere from 60 thousand to upwards of 350 thousand travelers stranded. The British government, through several programs, have taken upon the taxpayer's back to return citizen and non-citizen subjects to England. But this ignores the international divisions of the corporation that requires obligations to the parent corporation. Once again we see how the ChiComs have exploited international obligations, and has used their international  position to destroy competition.

Fosum can't take planes and assets as ordinary shareholders, the planes and assets will be stripped and sold off to partially pay the $2-3bil creditors (The banks). In a nutshell...... offshore private equity firms buy up a troubled company(2007), saddle it with more debt through mergers with other troubled companies (merged with 'My Travel' in 2013) , restructure the group (£1.1bil restructure in 2015) and flog it off cheaply(Fosum in 2017). The banks then refuse to extend more loans/overdraft facility (TC needed £250mil) and the whole shooting match goes tits-up. Equity firms piss off having cleared their bad debt through the various mergers and pocketing the restructure, banks get to sell off assets, taxpayer picks up tab. It's been going on for years, the Chinese are just new to it.