THOMAS Cook moved to assure holidaymakers their holidays are safe after the struggling travel group unveiled a refinancing deal which will strengthen Chinese investor Fosun’s grip on the company.

The world’s oldest package holiday company said bookings are secure as concern grew when shares plunged 55 per cent at one stage.

The firm is in talks with its largest shareholder over the deal which would effectively hand over control.

Thomas Cook said discussions are advanced with Chinese conglomerate Fosun over a £750 million cash injection, paving the way for a sale of its tour operator business.

READ MORE: Thomas Cook shares drop 40% amid takeover 

Existing shareholders will be significantly diluted as a result of the plans, although they will be offered the option to invest as part of the recapitalisation.

Peter Fankhauser, Thomas Cook chief executive, said: “After evaluating a broad range of options to reduce our debt and to put our finances onto a more sustainable footing, the board has decided to move forward with a plan to recapitalise the business, supported by a substantial injection of new money from our longstanding shareholder, Fosun, and our core lending banks."

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He also said: “While this is not the outcome any of us wanted for our shareholders, this proposal is a pragmatic and responsible solution which provides the means to secure the future of the Thomas Cook business for our customers, our suppliers and our employees.”

A spokesman for Fosun said: “We are committed investors, with a proven track record of turning around iconic brands including ClubMed.”

Aashna Shroff, a personal finance expert at, said “holidaymakers will understandably be concerned about the plight of Thomas Cook”.

Manuel Cortes, of transport union TSSA, said: "We would resist any break-up of Thomas Cook which would be detrimental to jobs but also the high street as whole.”