- Struggling travel company Thomas Cook said that China's Fosen had agreed to pay £450m to acquire 75% of its tour operator unit and 25% of its airline as part of a rescue deal.

The company's lenders were meanwhile targeting providing another £450m to the company and converting their existing debt into about 75% of the airline and 25% of the tourism operator.

The implementation of the plan was targeted for early October.

Thomas Cook said its current intention was to maintain the company's share-marketing listing, though it warned that 'in certain circumstances' the deal would result in the cancellation its listing.

The deal remained subject to a legally-binding agreement being reached by the parties and, where appropriate, the company's other key stakeholders.

Thomas Cook had stated in July that shareholders might be given the opportunity to participate in the recapitalisation, by way of an investment alongside Fosun and converting senior creditors, on terms to be agreed.

'The board continues to proceed on the basis that a recapitalisation, achieved with the support of shareholders, is the preferred means of securing the future of the group for all its stakeholders,' it said on Wednesday.

'However, the recapitalisation is expected to result in existing shareholders' interests in the recapitalised and reorganised group airline being significantly diluted, subject to feedback from creditors, the new money providers and other stakeholders.'

To get necessary creditor consents to the proposed transaction, Thomas Cook said it was launching three inter-conditional creditor schemes of arrangement of borrower companies. Story provided by