Thomas Cook had ‘minus £3bn on its balance sheet when it collapsed and would have run out of cash by October 4’

THOMAS Cook had a “deficit of over £3 billion” when it collapsed, with claims that they would have “run out of cash by October 4”.

The holiday firm went into liquidation on Monday, leading 150,000 Brits stranded abroad and 21,000 staff unemployed.

2

Peter Fankhauser, former chief executive of Thomas Cook, said in a High Court Witness statement earlier this month: “The company has a balance sheet deficiency of in excess of £3.1 billion,” as reported by The Times.

He added: “In simple terms the company will run out of cash by October 4.”

He also confirmed that the “absence of funding” led to the company going into liquidation and not administration.

The debts included £388 million for hotel partners, as well as £1.9 billion to organisations such as the CAA.

2

Thomas Cook also cited Brexit uncertainty, the falling pound and online competition as reasons for the debt.

The firm was left with just £956,670 in cash reserves, according to the Financial Times, and £31.2 million in bank accounts.

Dr Fankhauser previously said Thomas Cook had “worked exhaustively” to salvage a rescue package.

He said: “I know that this outcome will be devastating to many people and will cause a lot of anxiety, stress and disruption.

“I would like to apologise to our millions of customers, and thousands of employees, suppliers and partners who have supported us for many years.”

The Insolvency Service told The Sun: “The Official Receiver has a duty to investigate the causes of failure of the company, including the conduct of directors, as part of the liquidation process.

“The Official Receiver has wide-ranging powers to obtain the information he needs to complete these investigations.”

Thomas Cook customers who have been affected are advised to contact the CAA via its dedicated website for more information about what they should do next.

HOLIDAY HEROES

Travel firms save Thomas Cook customers’ hols & they won’t have to pay more

BA-D BEHAVIOUR

BA ‘demanded £10k from stranded Thomas Cook crew for empty seats on flight’

Exclusive

DOWN BUT NOT OUT

Failed Thomas Cook boss who pocketed £17m still flogging holidays to Brits

COOK’S BURDEN

Now TUI customers see holidays cancelled because of Thomas Cook collapse

‘WE’RE NOT COOKED’

TUI says it’s NOT going down like Thomas Cook despite earnings slump

WHAT A LAYOVER

Cabin crew told they left 9-inch sex toy at hotel via a very public memo

TUI customers found their holidays were also cancelled due to the Thomas Cook collapse, due to the tour operator offering Thomas Cook flights.

Airlines and tour operators were spotted hiking their prices by triple the amount after all Thomas Cook holidays were cancelled.

Jet2, Ryanair and BA prices were all much more expensive due to the increase in demand.