A panel of bankers will rule tomorrow whether some investors in Thomas Cook’s credit are due a payout under bankruptcy rules, a decision that could smooth a rescue of the world’s oldest travel company, Reuters reported. The British firm, which employs 21,000 people across 16 countries, agreed the key terms of a rescue deal with Chinese shareholder Fosun last month. But it must be approved by creditors next week. Following Thomas Cook’s filing for chapter 15 protection in the U.S., Credit Derivatives Determinations Committees (DCs) have been asked to adjudge: “Has a Bankruptcy Credit Event occurred with respect to Thomas Cook Group PLC?” If the answer is yes, it is likely to remove the risk of the CDS holders rejecting the restructuring plan next week in order to get paid. “Some debtholders would simply try to block the vote for the rescue plan if they were not helped in activating the CDS,” said an analyst at a European bank, who declined to be named.
