Thomas Cook sells Spanish chain for €72m

13th Dec 2011 08:27

Struggling travel firm Thomas Cook has sold Hotels Y Clubs De Vacaciones (HCV) to Grupo Iberostar for €72.2m.HCV is a holding company that, together with another shareholder, owns five Spanish hotels and one golf club as well as operating a second golf club in Spain. It is being sold with net debt of €22.4m, meaning the transaction will reduce Thomas Cook's net debt by €94.6m (£81m).The sale of HCV is part of Thomas Cook's disposal programme announced earlier this year, which aims to clear out £200 million of non-core assets over a six to eighteen month period. Thomas Cook recently struck a deal with its banks giving it a £200m life line.In late November the firm's banks, which are led by Barclays, HSBC, RBS and UniCredit, agreed to provide the new facility available until 30 April 2013, which replaces the £100m short-term facility announced on 21 October 2011. They also agreed a further relaxation of the financial agreements under the existing facilities, giving the group increased headroom to deal with unexpected events and the effects of an uncertain economic environment.A toxic mixture of economic crisis and political unrest in the Middle East and Africa has hit the firm hard, with its share price tumbling over 90% in the last year.Thomas Cook's shares rose 2.5% following the announcement.