Travel giant Thomas Cook should make a significant conversion of debt into new shares in the company, according to several debt holders and shareholders in the company, according to an analysis from Citigroup, Bloomberg News reports.

If the conversion of one billion pounds in debt is successful, the company will save interest payments and will have the opportunity to continue operating in the long term. At the same time, existing shareholders will be affected as ownership is diluted and for Thomas Cook this would not be a ”structural solution” to the problems, the bank writes.

Source: finwire

Thomas Cook's finances deteriorated due to the hot summer of 2018, which led to fewer bookings. The company is now trying to strengthen its balance sheet by, among other things, selling off its airlines.