Thomas Cook paid millions to advisers days before collapse
Published on Sunday, October 6, 2019
Thomas Cook paid over £20 million to advisers in the final days before it collapsed.
More than 30 advisers involved in talks to restructure the business and save it from failing shared the money.
Recipients worked on behalf of the company bondholders, shareholders, the pension fund and insurance schemes, benefitted, according to reports.
The payout was a result of the Thomas Cook group trying to get all parties around the table to reach a deal, according to reports first highlighted in the Financial Times.
The FT reports the Big Four accounting groups, 20 law firms and leading restructuring advisers were brought in, along with turnaround specialist Alvarez and Marsal, on behalf of the Civil Aviation Authority.
Shadow Chancellor John McDonnell told the FT: “The workers and customers of Thomas Cook will look on aghast at the feeding feast that has taken place at this company by accountants and advisers whilst they have lost their wages, jobs and holidays.”