Talk Morgan Forums Community The Malvern Arms Thomas Cook bankrupt

Totally agree Giles. Not sure how the bankruptcy laws work in the UK but in some jurisdictions a creditor who is paid before the bankruptcy may be considered unfairly favoured and may have to refund the payment to eventually be re-divided amongst all the creditors, that is if anything is left after the fees and expenses of the "Official Receiver".

Payments made to directors and managers should be treated the same way. It can be hard to prove but in Australia it is an offense to trade whilst knowingly insolvent.

I too struggle as to why I as a tax payer are paying to get people home. They should have insurance or be covered by ABTA.
I also agree on the bonuses. They should be paid back in full.

The whole ethos of budget airlines, airport expansion and mass transport of the hoi polloi in a world of climate change is astonishing.

On the BBC news this morning, there was talk of a weeks holiday in Greece for $200, including hotel, but probably not food.

I can't comprehend the thinking behind this, but the obvious outcome is much more CO2 in the atmosphere.

Meanwhile the motorists are the scapegoats.

Any company offering packages by air must have an ATOL (Air Travel Organiser's Licence). This is a government scheme administered by the CAA. I know for my previous career that to obtain one the company must provide evidence of the financial position. I seems that whoever approved the renewal of their ATOL is a bit like an insurance agent agreeing fire insurance for a house that is already smoking!

A bit of history, from memory I think Cooks was taken over thirty or so years ago by a German Bank (Deutsche Bank?) but obviously they subsequently sold on to venture capitalists.

And even older history, in 1841 there first travel venture was to allow the citizens of Leicester attend a sermon delivered by a noted temperance preacher. But some contemporary reports indicate that quite a few of the group did not take much notice of the sermon as they had more than the cream tea included with the ticket!

Quentin

Apparently ATOL only covers packaged holidays so if you booked a flight only then you need to check with your credit card company or travel insurance.

Re the government using Thomas Cook to repatriate holidaymakers; unfortunately as soon as they go bust they lose their Airline Operations Certificate meaning they are not able to fly anyone anywhere.

It's the same over here as well but the problem is the definition of 'insolvent'. A company can be massively in debt making huge losses but if it can still pay its creditors when they are due through financing (drawing down loans on the debtor book) loans on assets or investor cash, it isn't technically insolvent.

Thats the biggest problem with loss making businesses. There are too many ways to keep them going long after there is any chance of recovery

Yes. When your business owes the bank £5,000 then you have a problem. When your business owes the bank £5,000,000 then the bank has a problem.

Another example of the "Unacceptable Face of Capitalism".
But not as odious as the unacceptable face of socialism, in my view.

Very true

I’m sure the executives of Carillion thought they were too big to be allowed to fail and the government would keep bailing them out and I wonder if Thomas Cooks execs thought the same