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MPs urge Thomas Cook chiefs to repay bonuses over company's collapse - business live MPs blast Thomas Cook bosses' failures, and demand bonuses are repaid – business live
(32 minutes later)
Mark Carney added that that some people in the financial markets will make money whichever direction Brexit takes.
The governor told the Treasury committee (on a busy morning for committees) that:
“On no-deal some people will become wealthier as a consequence of that, yes. Others will become poorer - they [winners] will be outnumbered by the number who become poorer.”
And on Facebook’s Libra, Carney said the cryptocurrency is either going to be regulated properly globally “or it’s not going to happen” - and he says he’s confident that will be the view of the G7 and G20 financial stability board.
“This will not be like social media. This will not be a case where something gets up and starts running and then the system tries to figure out after the fact how it’s going to regulate it.
“It’s either going to be regulated properly, overseen properly, or it’s not going to happen.”
While the BEIS committee was eviscerating Thomas Cook’s failures, Bank of England governor Mark Carney was being quizzed about climate change.
This continued from his comments in our exclusive interview at the weekend.
In stark analysis of the world’s financing of carbon-intensive assets, he says the global capital markets - where companies sell their bonds and shares to investors to fund their activities - are on a track to lift the temperature of the planet by more than 4 degrees C above pre-industrial levels.
That’s double the target of the Paris climate agreement is to keep temperature rises well below 2c to avert catastrophe.
Carney says he based the assessment on fund management firms that have analysed the climate-linked assets in their portfolios, including the massive $1.6tn Japan Pension Fund, which he says holds assets consistent with a 3.7 degrees rise. The fund is attempting to manage that down, he says.
Axa, another investment manager, prices US government debt at “5.4C”, he says, reflecting the carbon intensive nature of the US economy. The UK is much lower, he says.
Some companies are ahead of the game, Carney says, but many others are waiting for policies to change:
“Policy is not yet consistent with stabilising temperatures below 2c. There are some companies out ahead, either because of their stakeholders, or because they’re anticipating that that will change. But there are others that are waiting for the policies to adjust”
Here’s a snap summary of the key points from today’s blistering inquiry:
Takeaways from first hearing of MPs' Thomas Cook inquiry:-- Directors say they proposed a rescue plan costing taxpayers less than the collapse. No10 knew of it. Govt refused.- MPs savage execs for failures including unrealistic accounting.- CEO won't commit to repay bonus.
Also, MPs were incredulous at the lack of engagement from minister with Thomas Cook in the week leading up to its collapse.
Finally, Rachel Reeves MP chastises the former Thomas Cook bosses for their failure to run the company properly, or to show dignity at today’s inquiry.
A travel company is a simple business at heart, the BEIS committee chair says.
You send people on holiday, make sure they have a good time, and bring them back. Thomas Cook couldn’t get that right, so it failed - and that failure touched a lot of people a lot harder than it touched the five well-paid executives in front of the committee.
You’ve all given your apologies, Reeves continues. But frankly, as seen time and time again on this committee, apologies are the easy bit. The hard bit is to resign from other other directorships, and recognised you have a lot to learn.
And... to:
Give back some of the huge rewards that you have not earned, Mr Peter Fankhauser, but you have received.
And with a final flourish, she urges Peter Fankhauser, Frank Meysman, Martine Verluyten, Sten Daugaard and Warren Tucker to reflect on the dignity which other Thomas Cook workers have shown, but which the committee has not seen today.
And with that, they’re dismissed...
Rachel Reeves rounds the session up, with a scathing, magisterial dismissal of some of the excuses we’ve heard this morning.Rachel Reeves rounds the session up, with a scathing, magisterial dismissal of some of the excuses we’ve heard this morning.
She begins by dismissing former chairman Frank Meysman claim that a “tragedy” occurred one Saturday in September, when Thomas Cook went under.She begins by dismissing former chairman Frank Meysman claim that a “tragedy” occurred one Saturday in September, when Thomas Cook went under.
Reeves says:Reeves says:
A tragedy, though, speaks of something that is out of your hands.A tragedy, though, speaks of something that is out of your hands.
I don’t think this was out of the hands of the company. On the contrary, I would say that that the collapse of Thomas Cook was due to the decisions of the board, including you, Mr Meysman.I don’t think this was out of the hands of the company. On the contrary, I would say that that the collapse of Thomas Cook was due to the decisions of the board, including you, Mr Meysman.
Reeves says “a series of misjudgements made by management” led to the inevitable collapse of the world’s oldest travel firm, namely:Reeves says “a series of misjudgements made by management” led to the inevitable collapse of the world’s oldest travel firm, namely:
A failure to deal with the debt, not accumulated by Peter Fankhauser, but not dealt with in the five years he was in charge, or under Meysman’s chairmanshipA failure to deal with the debt, not accumulated by Peter Fankhauser, but not dealt with in the five years he was in charge, or under Meysman’s chairmanship
A failure to write down goodwill. It “can’t be true” that goodwill was worth £2.5bn one minute and £1.5bn the next -- and now worth nothing.A failure to write down goodwill. It “can’t be true” that goodwill was worth £2.5bn one minute and £1.5bn the next -- and now worth nothing.
The use of special disclosed items seem to be “anything but special, as they occurred year after year.” The use of special disclosed items in the financial accounts seem to be “anything but special, as they occurred year after year.”
All of the special events -- good weather, terrorism, volcanic ash -- every year there was some special item that helped to hide the underlying problems, rather than reveal the underlying state of the company.All of the special events -- good weather, terrorism, volcanic ash -- every year there was some special item that helped to hide the underlying problems, rather than reveal the underlying state of the company.
Failure to sell parts of the business that could have saved other parts; including the failure to sell the airline, failure to sell the travel agencies, the failure to raise the extra £200m needed.Failure to sell parts of the business that could have saved other parts; including the failure to sell the airline, failure to sell the travel agencies, the failure to raise the extra £200m needed.
She then dismisses Meysman’s claim that Thomas Cook was “almost there” with its rescue plan.She then dismisses Meysman’s claim that Thomas Cook was “almost there” with its rescue plan.
Then looking to the back of the room, Reeves points out that former Thomas Cook staff have attending the hearing, in their uniforms, showing their commitment to the company.Then looking to the back of the room, Reeves points out that former Thomas Cook staff have attending the hearing, in their uniforms, showing their commitment to the company.
They do your company proud, and you should reflect, Mr Fankhauser, what you can do to put something back and say sorry to the people whose jobs you have taken and whose holidays you have ruined.They do your company proud, and you should reflect, Mr Fankhauser, what you can do to put something back and say sorry to the people whose jobs you have taken and whose holidays you have ruined.
I hope you will go away and reflect on the huge salaries you have earned, and what you can do to put right what you’ve done wrong, she adds.I hope you will go away and reflect on the huge salaries you have earned, and what you can do to put right what you’ve done wrong, she adds.
Anna Turley MP turns to pensions.Anna Turley MP turns to pensions.
Q: How is it fair that Peter Fankhauser got a pension contribution of 30% of his salary?Q: How is it fair that Peter Fankhauser got a pension contribution of 30% of his salary?
Fankhauser says that’s a matter for the remuneration committee, but adds he faces a “considerable impairment” of his pension accumulated between 2001 and 2013 in Germany, when he was running Thomas Cook’s European operations.Fankhauser says that’s a matter for the remuneration committee, but adds he faces a “considerable impairment” of his pension accumulated between 2001 and 2013 in Germany, when he was running Thomas Cook’s European operations.
He reiterates that he won’t defend his pay - that’s was set by the company - and adds that he has lost £4m of shares.He reiterates that he won’t defend his pay - that’s was set by the company - and adds that he has lost £4m of shares.
Warren Tucker confirms that Thomas Cook’s executive pay packets were “large by any standard” and when compared to average pay at the company (a fine statement of the bleedin’ obvious).Warren Tucker confirms that Thomas Cook’s executive pay packets were “large by any standard” and when compared to average pay at the company (a fine statement of the bleedin’ obvious).
Turley points out that Thomas Cook’s workers face uncertainty over their own pensions, and the committee needs to keep a close eye on this.Turley points out that Thomas Cook’s workers face uncertainty over their own pensions, and the committee needs to keep a close eye on this.
BEIS committee chair Rachel Reeves circles back to the pay question -- how much of the £20m of board bonuses paid out in the last five years be clawed back?BEIS committee chair Rachel Reeves circles back to the pay question -- how much of the £20m of board bonuses paid out in the last five years be clawed back?
Warren Tucker says that Peter Fankhauser received £1.7m in bonuses. One third has been lost, and the clawback procedures means the rest of the 2017 bonus could be clawed back, if the liquidator decides it is appropriate.Warren Tucker says that Peter Fankhauser received £1.7m in bonuses. One third has been lost, and the clawback procedures means the rest of the 2017 bonus could be clawed back, if the liquidator decides it is appropriate.
It could be £558,000.It could be £558,000.
Fankhauser’s £4m of shares has already been lost.Fankhauser’s £4m of shares has already been lost.
Q: What about other bonuses?Q: What about other bonuses?
Tucker says the finance director received a £400k bonus in 2017 - and it could also be clawed back.Tucker says the finance director received a £400k bonus in 2017 - and it could also be clawed back.
Q: So should they be clawed back?Q: So should they be clawed back?
That’s up to the people running the business now, says Tucker.That’s up to the people running the business now, says Tucker.
There are four criteria that have to be met -- Statement of the accounts, reputational damage, gross misconduct and financial failure.There are four criteria that have to be met -- Statement of the accounts, reputational damage, gross misconduct and financial failure.
Well, the financial failures and reputational damage boxes have been “absolutely ticked” says Reeves triumphantly.Well, the financial failures and reputational damage boxes have been “absolutely ticked” says Reeves triumphantly.
Q: So shouldn’t the bonuses be clawed back, in your view?Q: So shouldn’t the bonuses be clawed back, in your view?
Tucker argues that Fankhauser worked “exhaustively” to save the company.....Tucker argues that Fankhauser worked “exhaustively” to save the company.....
Reeves (who doesn’t appear very impressed by the witnesses) lets rip again:Reeves (who doesn’t appear very impressed by the witnesses) lets rip again:
Q: What’s the point of clawback policies if you can’t claw back a bonus when a company collapses, taking jobs, taxpayers money and the hopes and dreams of your customers. You put those facilities in place!Q: What’s the point of clawback policies if you can’t claw back a bonus when a company collapses, taking jobs, taxpayers money and the hopes and dreams of your customers. You put those facilities in place!
Tucker says the bonuses can be clawed back - it’s up to the liquidator.Tucker says the bonuses can be clawed back - it’s up to the liquidator.
Back in the Grimond Room, the BEIS committee want to know whether Thomas Cook accepts it shouldn’t have paid such large bonuses.Back in the Grimond Room, the BEIS committee want to know whether Thomas Cook accepts it shouldn’t have paid such large bonuses.
Q: With hindsight, have you learned anything or would you have done the same thing?Q: With hindsight, have you learned anything or would you have done the same thing?
Warren Tucker, who was responsible as remuneration committee chair, concedes that bonuses were mis-structured - there was too much focus on profits, and not on cash-flow generation.Warren Tucker, who was responsible as remuneration committee chair, concedes that bonuses were mis-structured - there was too much focus on profits, and not on cash-flow generation.
With hindsight, we wouldn’t have paid the 2% pay rises either.With hindsight, we wouldn’t have paid the 2% pay rises either.
Q: You’re a non-executive director at the Foreign and Commonwealth Office - has anyone asked you about your suitability for that role?Q: You’re a non-executive director at the Foreign and Commonwealth Office - has anyone asked you about your suitability for that role?
Tucker says he left the board in May, so “none of these events” coincided with his time at the FCO.Tucker says he left the board in May, so “none of these events” coincided with his time at the FCO.
I just checked, and he started at the FCO in 2015.....I just checked, and he started at the FCO in 2015.....
Q: What about other former Thomas Cook executives?Q: What about other former Thomas Cook executives?
Frank Meysman says he has tendered his resignation from two other boards,and been asked to stay on. Martine Verluytem says the same happened to her - the two boards she serves on believes she provides value.Frank Meysman says he has tendered his resignation from two other boards,and been asked to stay on. Martine Verluytem says the same happened to her - the two boards she serves on believes she provides value.
“That is fascinating”, Kyle tells the pair -- which may be a polite way of saying “surprising”.“That is fascinating”, Kyle tells the pair -- which may be a polite way of saying “surprising”.
Catherine McKinnell, the temporary chair of the Treasury committee, asks Mark Carney about financial firms betting on the outcome of Brexit on the currency markets.Catherine McKinnell, the temporary chair of the Treasury committee, asks Mark Carney about financial firms betting on the outcome of Brexit on the currency markets.
It’s a politically-charged question for the governor - given Boris Johnson has received political donations from hedge fund bosses who back Brexit.It’s a politically-charged question for the governor - given Boris Johnson has received political donations from hedge fund bosses who back Brexit.
Carny reels through the (relatively new) rules for the $6tn global currency market, which was found to be a hotbed of insider trading and manipulation a few years back in a major scandal.Carny reels through the (relatively new) rules for the $6tn global currency market, which was found to be a hotbed of insider trading and manipulation a few years back in a major scandal.
Under the Bank’s “senior managers regime,” finance industry managers have direct personal responsibility for conduct up and down their organisations, he says.Under the Bank’s “senior managers regime,” finance industry managers have direct personal responsibility for conduct up and down their organisations, he says.
The governor says Brexit developments are driving movements in the currency at the moment, and that the pound will certainly move up or down over the coming days and weeks.The governor says Brexit developments are driving movements in the currency at the moment, and that the pound will certainly move up or down over the coming days and weeks.
While financial stability can be maintained, he adds:While financial stability can be maintained, he adds:
“There will be some financial institutions and maybe some individuals associated with those institutions who have correctly predicted, or got lucky, on which direction sterling ends up going. And they will potentially make a lot of money.”“There will be some financial institutions and maybe some individuals associated with those institutions who have correctly predicted, or got lucky, on which direction sterling ends up going. And they will potentially make a lot of money.”
Elsewhere in Westminster Mark Carney, the governor of the Bank of England is answering questions from the Treasury Select Committee.Elsewhere in Westminster Mark Carney, the governor of the Bank of England is answering questions from the Treasury Select Committee.
The MPs have taken questions from the public, including on Twitter, to quiz the governor. First up: When will your successor be recruited and hired?The MPs have taken questions from the public, including on Twitter, to quiz the governor. First up: When will your successor be recruited and hired?
Carney highlights two things: Sajid Javid’s recent comment that the process is on track, but that parliament is “quite occupied with some urgent affairs of state”.Carney highlights two things: Sajid Javid’s recent comment that the process is on track, but that parliament is “quite occupied with some urgent affairs of state”.
He says there is however ample time for the government to hire his successor and that a wide range of qualified candidates are there to pick from.He says there is however ample time for the government to hire his successor and that a wide range of qualified candidates are there to pick from.
“Whereas I was appointed several months before I took office, there are examples, including of the ECB, where the most recent president, Mario Draghi was appointed a few weeks in advance of taking office.”“Whereas I was appointed several months before I took office, there are examples, including of the ECB, where the most recent president, Mario Draghi was appointed a few weeks in advance of taking office.”
“[Britain] will have a highly qualified governor, a more highly qualified governor, in the new year.”“[Britain] will have a highly qualified governor, a more highly qualified governor, in the new year.”
Carney says there will be an orderly transition, adding:Carney says there will be an orderly transition, adding:
“The government and this process has encouraged a very wide range of high quality people to apply. It’s afforded a good set of options for the government to consider.”“The government and this process has encouraged a very wide range of high quality people to apply. It’s afforded a good set of options for the government to consider.”
Peter Kyle returns to the Thomas Cook bonuses.Peter Kyle returns to the Thomas Cook bonuses.
Q: The collapse of your company has created real suffering for your employees. You’ve not suffered the same way. Why have you not put your hand into your own pocket?Q: The collapse of your company has created real suffering for your employees. You’ve not suffered the same way. Why have you not put your hand into your own pocket?
Peter Fankhauser says he won’t defend his pay, compared to ordinary workers. But he repeats that he worked “exhaustively and very hard” to try to rescue the company -- adding that he wasn’t paid in September.Peter Fankhauser says he won’t defend his pay, compared to ordinary workers. But he repeats that he worked “exhaustively and very hard” to try to rescue the company -- adding that he wasn’t paid in September.
[Reminder: Fankhauser received £8.4m during his tenure as chief executive at Thomas Cook, including £4.6m in bonuses][Reminder: Fankhauser received £8.4m during his tenure as chief executive at Thomas Cook, including £4.6m in bonuses]
Q: How can chairman Frank Meysman justify receiving over £4m over the years?Q: How can chairman Frank Meysman justify receiving over £4m over the years?
Meysman says he was paid £275,000 per year, over his six years, plus £30,000 in expenses as he lives in Belgium.Meysman says he was paid £275,000 per year, over his six years, plus £30,000 in expenses as he lives in Belgium.
Q: OK, but can you justify that.Q: OK, but can you justify that.
Meysman says that’s for others to judge, but insists he did the job “for pleasure”, and had also bought shares with his own money.Meysman says that’s for others to judge, but insists he did the job “for pleasure”, and had also bought shares with his own money.
Q: Does Warren Tucker (remuneration committee chair) agree that bonuses were paid as a reward for failure?Q: Does Warren Tucker (remuneration committee chair) agree that bonuses were paid as a reward for failure?
Tucker tries to defend the use of underlying profits for bonuses, but “Absolutely, at the end I agree” that the company failed.Tucker tries to defend the use of underlying profits for bonuses, but “Absolutely, at the end I agree” that the company failed.
Peter Kyle MP asks how the board addressed the rising crisis that subsumed Thomas Cook.Peter Kyle MP asks how the board addressed the rising crisis that subsumed Thomas Cook.
Former chair Frank Meysman says board members discussed how to cut its debt levels, and devised a plan to cut the pile by £100m per year.Former chair Frank Meysman says board members discussed how to cut its debt levels, and devised a plan to cut the pile by £100m per year.
Q: But your plans didn’t work, so was the crisis ‘normalised’?Q: But your plans didn’t work, so was the crisis ‘normalised’?
Meysman says Thomas Cook did raise £400m through a rights issue, sold £350m of assets. Steps were taken, he insists.Meysman says Thomas Cook did raise £400m through a rights issue, sold £350m of assets. Steps were taken, he insists.
Q: But that just shows you were reacting to the crisis!Q: But that just shows you were reacting to the crisis!
Meysman says the company had a strategic plan - managing more of its own hotels, a new tie-up in China with Fosun, and a focus on Russia. But the overriding priority was to lower debts, thus the restructuring plan.Meysman says the company had a strategic plan - managing more of its own hotels, a new tie-up in China with Fosun, and a focus on Russia. But the overriding priority was to lower debts, thus the restructuring plan.
Q: But you’re travelling around the world, asking people to lend you more money. You look like a gambling addict, trying to open more credit cards to keep your addiction running.Q: But you’re travelling around the world, asking people to lend you more money. You look like a gambling addict, trying to open more credit cards to keep your addiction running.
Meysman tried to sweep this aside. He says the £900 rescue plan was a “great plan”, saving employees and hoteliers, and not costing the government anything (he claims) - until it collapsed on 22 September when the government refused to provide help.Meysman tried to sweep this aside. He says the £900 rescue plan was a “great plan”, saving employees and hoteliers, and not costing the government anything (he claims) - until it collapsed on 22 September when the government refused to provide help.
Q: But you wanted £200m of support, and that would have been swallowed up by your £150m debt servicing costs, postponing the inevitable.Q: But you wanted £200m of support, and that would have been swallowed up by your £150m debt servicing costs, postponing the inevitable.
Meysman says those debt repayments were a “heavy heavy load”.Meysman says those debt repayments were a “heavy heavy load”.
Fankhauser adds that he was in ‘close contact’ with UK government bodies, with around 100 meetings in the last year.Fankhauser adds that he was in ‘close contact’ with UK government bodies, with around 100 meetings in the last year.
That included a meeting with Grant Shapps, transport secretary, on 9th September, when Fankhauser told Shapps that TC’s banks were seeking additional financing to underpin the rescue plan.That included a meeting with Grant Shapps, transport secretary, on 9th September, when Fankhauser told Shapps that TC’s banks were seeking additional financing to underpin the rescue plan.
Q: Did you have any contact with the business department in the run-up to your collapse?Q: Did you have any contact with the business department in the run-up to your collapse?
Fankhauser says no, because the transport department told him not to!Fankhauser says no, because the transport department told him not to!
We covered this last month:We covered this last month:
Andrea Leadsom under fire over lack of talks with Thomas CookAndrea Leadsom under fire over lack of talks with Thomas Cook
Rachel Reeves asks whether Thomas Cook spoke to government ministers in other countries.Rachel Reeves asks whether Thomas Cook spoke to government ministers in other countries.
Apparently they spoke to lots!Apparently they spoke to lots!
Peter Fankhauser says he spoke to the tourism ministers of Spain, Bulgaria, Turkey and Greece, who were concerned about the situation.Peter Fankhauser says he spoke to the tourism ministers of Spain, Bulgaria, Turkey and Greece, who were concerned about the situation.
He says that he knows that some of them contacted the UK government, and were told they’d “See you on Monday in New York”.He says that he knows that some of them contacted the UK government, and were told they’d “See you on Monday in New York”.
That, I think, must refer to the UN Climate Summit which began on Monday 23rd, attended by Boris Johnson.That, I think, must refer to the UN Climate Summit which began on Monday 23rd, attended by Boris Johnson.
Fankhauser adds that Thomas Cook engaged intensively with the government, at the highest level, in the days before its collapse.Fankhauser adds that Thomas Cook engaged intensively with the government, at the highest level, in the days before its collapse.
We were “pretty confident”, he says, but then on Sunday 22nd September the company realised that it faced a cliff-edge - without government support, the game was up.We were “pretty confident”, he says, but then on Sunday 22nd September the company realised that it faced a cliff-edge - without government support, the game was up.
Fankhauser says that at 5pm that day he realised he “had to throw in the towel” when he spoke to a “high official” on the phone, and learned that the government wouldn’t support the plan.Fankhauser says that at 5pm that day he realised he “had to throw in the towel” when he spoke to a “high official” on the phone, and learned that the government wouldn’t support the plan.
This is the letter the government sent to Thomas Cook, informing the company that it had decided not to support the rescue plan. “Significant precedent risk” is the reason given for rejecting the request for financial help. Hours after the letter was sent Thomas Cook went bust. pic.twitter.com/aRtrlR9hsbThis is the letter the government sent to Thomas Cook, informing the company that it had decided not to support the rescue plan. “Significant precedent risk” is the reason given for rejecting the request for financial help. Hours after the letter was sent Thomas Cook went bust. pic.twitter.com/aRtrlR9hsb
Q: Did you speak to any ministers on that Sunday?Q: Did you speak to any ministers on that Sunday?
No, Fankhauser replies. We were clearly told earlier that week that the point of contact was the officials who were sitting in our meetings.No, Fankhauser replies. We were clearly told earlier that week that the point of contact was the officials who were sitting in our meetings.
The committee look astonished.The committee look astonished.
Q: Didn’t you try to challenge this?Q: Didn’t you try to challenge this?
Fankhauser says no, but adds that the company did have contact with officials in Number 10 Downing Street.Fankhauser says no, but adds that the company did have contact with officials in Number 10 Downing Street.
The other Thomas Cook executives confirm that they didn’t speak to a minister either!The other Thomas Cook executives confirm that they didn’t speak to a minister either!
Q: Do you regret that, Mr Meysman? (former TC chair).Q: Do you regret that, Mr Meysman? (former TC chair).
Meysman suggests that with hindsight, things could have been different (not the first time he’s cited hindsight).Meysman suggests that with hindsight, things could have been different (not the first time he’s cited hindsight).
Q: Who did you speak to at Fosun?Q: Who did you speak to at Fosun?
The chairman.The chairman.
Q: But when it comes to the government, you only spoke to an official?Q: But when it comes to the government, you only spoke to an official?
Yes.Yes.
Q: Would it have been in the taxpayers’ interest to rescue Thomas Cook?Q: Would it have been in the taxpayers’ interest to rescue Thomas Cook?
Former chair Frank Meysman says that this is a matter for governments, but points out that other governments have taken a different view. Germany, for example, has bailed out the Condor airline (which is profitable).Former chair Frank Meysman says that this is a matter for governments, but points out that other governments have taken a different view. Germany, for example, has bailed out the Condor airline (which is profitable).
He then throws an elbow at the government for simply sending an email on Sunday 22nd September (the day before the collapse) saying it wouldn’t provide support.He then throws an elbow at the government for simply sending an email on Sunday 22nd September (the day before the collapse) saying it wouldn’t provide support.
I wish someone from the government would have come and sat down with us, and the chairs of its banks - who were in the country - Meysman says.I wish someone from the government would have come and sat down with us, and the chairs of its banks - who were in the country - Meysman says.
Former CEO Peter Fankhauser agrees that government support on that Sunday would have been vital. He says Thomas Cook had worked out that the cost of its collapse to the taxpayer was higher than the amount of extra money it needed to keep going.Former CEO Peter Fankhauser agrees that government support on that Sunday would have been vital. He says Thomas Cook had worked out that the cost of its collapse to the taxpayer was higher than the amount of extra money it needed to keep going.
Q: But wouldn’t a bailout have simply delayed the inevitable?Q: But wouldn’t a bailout have simply delayed the inevitable?
We would have been one of the best funded travel companies in Europe if the recapitalision plan had gone ahead, Fankhauser insists, waving his hands in the air as he insists the company could have had a bright future.We would have been one of the best funded travel companies in Europe if the recapitalision plan had gone ahead, Fankhauser insists, waving his hands in the air as he insists the company could have had a bright future.
Q: But what would have changed?Q: But what would have changed?
Fankhauser says Thomas Cook would have had a new rolling credit facility, money from the bondholders, maybe new investment from elsewhere (if Fosun allowed it).Fankhauser says Thomas Cook would have had a new rolling credit facility, money from the bondholders, maybe new investment from elsewhere (if Fosun allowed it).
Plus, enough money to get through the winter, expand in China, expand its online business, because the debt burden would have been lifted.Plus, enough money to get through the winter, expand in China, expand its online business, because the debt burden would have been lifted.
Frank Field MP, Chair of the Work and Pensions Committee, has urged Thomas Cook’s former top brass to do the right thing, and hand their bonuses to the firm’s pension fund.Frank Field MP, Chair of the Work and Pensions Committee, has urged Thomas Cook’s former top brass to do the right thing, and hand their bonuses to the firm’s pension fund.
Field says:Field says:
“Thomas Cook workers now face a long wait to find out exactly how much they’ve lost from their life savings, and while their former bosses might argue that this isn’t another BHS, Carillion or British Steel, they will have a hard time justifying the millions they pocketed, one eye on the door, while the company collapsed around them.“Thomas Cook workers now face a long wait to find out exactly how much they’ve lost from their life savings, and while their former bosses might argue that this isn’t another BHS, Carillion or British Steel, they will have a hard time justifying the millions they pocketed, one eye on the door, while the company collapsed around them.
“If they’ve had a chance to check how their own pensions are affected, perhaps the high-paid executives responsible would like to bolster the retirement of some of the workers they left behind, and give some of it back?”“If they’ve had a chance to check how their own pensions are affected, perhaps the high-paid executives responsible would like to bolster the retirement of some of the workers they left behind, and give some of it back?”