Thomas Cook owner needs state aid

The German majority owner of travel firm Thomas Cook has warned it could go into administration within weeks until it gets emergency loans from Berlin.
However, there are increasing signs from both the German government and the European Commission that state aid will not be forthcoming for Arcandor.
Both Berlin and Brussels have indicated that the firm is ineligible because its troubles pre-date the global recession.
However, Arcandor’s troubles are not expected to affect the travel company.
A Thomas Cook spokeswoman said it was „completely ring-fenced“ from Arcandor.
‘Cautious’
Arcandor has asked the German government for 650m euros ($930m; £561m) of loan guarantees, and a direct credit line of 200m euros.
The German government has a 100bn-euro fund to provide temporary loans for firms hit by last year’s financial crisis and its aftermath. But this does not apply to companies that first got into difficulties before 1 July 2008.
German Chancellor Angela Merkel and Foreign Minister Frank-Walter Steinmeier – who will be standing against her for the top job in September’s general election – have both distanced themselves from helping Arcandor, which also owns a minority stake in German department store group Karstadt.
Ms Merkel described the state aid being offered carmaker Opel as „an exceptional case“, saying she „did not see other cases of a similar nature“.
Meanwhile, Mr Steinmeier said the government had to be „cautious“.
‘Disqualified’
This scepticism was backed by the European Commission, which said that „on the basis of preliminary information we have it would appear that Arcandor was already in difficulties before 1 July, and would not qualify for state aid under the temporary framework“.
However, the Commission said the Germany government could chose to assist Arcandor with other funds.
The German government has called on Arcandor’s main shareholders to provide the firm with the additional funds it needs.
Arcandor insists that its problems are a direct result of the global credit squeeze as it has been unable to get new loans from commercial banks, or extend its current borrowings.
The firm owns a 52.8% stake in Thomas Cook, which is listed on the London Stock Exchange.
Arcandor first asked the German government for emergency loans last month.