What financial failure looks like #TCG
This is a great video from the CEO and CFO of Thomas Cook, explaining what the recapitalisation of Thomas Cook (TCG) means for shareholders (hat-tip to @nigelpm_uk on twitter for sharing the link!)
If there are any shareholders who have failed to understand recent developments, this video should help to clear it up for them.
After explaining that a cash injection is needed and that a much lower debt burden will make life easier in the future, the managers say:
“The bitter pill is effectively what we are doing to our shareholders…”
“[The share price] will be traded down to almost nothing… the existing shareholders will own a very small portion of the company, that is a huge dilution of their ownership in the company, and the share price will react accordingly…”
The CEO’s conclusion tells the story:
“It’s not all good news, but it is definitely good news for our brand, for our customers, for our suppliers, for our employees, because it secures our business for the future”.
Congratulation to those who have been successfully shorting this one.