Struggling travel group Thomas Cook Group (TCG) has confirmed it is seeking £150million from investors, sending shares tumbling. The cash injection would be on top of a recent £750million rescue package provided by its major shareholder, Chinese firm Fosun Tourism, and its lenders. The 178-year-old company, which has been hit by fading demand for its package holidays, plans to use the proceeds to ‘ensure further liquidity headroom for the difficult winter period’. Last month, the travel agent admitted it was hammering out a rescue plan with its lenders and Fosun and warned that the deal would see some remaining shareholders wiped out. Thomas Cook reiterated that existing shareholders were likely to be ‘significantly diluted’ as part of the recapitalisation, which it expects to implement in early October 2019.
Burford Capital (BUR) has accused its US aggressor of nefarious tactics, and the matter is being investigated by the City watchdog. Burford says its share price was illegally manipulated around the time hedge fund Muddy Waters launched its ‘attack’. Last week, the US hedge fund took a short position on Burford stock and published a damning 25-page dossier on the company that criticised its accounting practices. Burford said that a forensic examination of detailed trading data on Tuesday August 6 – when Muddy Waters tweeted about a forthcoming but unidentified short target – and Wednesday August 7 suggested trading was ‘consistent with material illegal activity’. The Financial Conduct Authority said it is making ‘wide-ranging enquiries’ into the situation, adding it has been ‘aware of these matters since the first tweet and price movements on Tuesday of last week’