Thomas Cook ‘paid more than £20million to City accountants in the final days before it went bust’

Thomas Cook ‘paid more than £20million to City accountants in the final days before it went bust’

- in Uk News

THOMAS Cook paid more than £20million to 30 City accountants and advisers in its final days, it was claimed last night.

It splashed out for talks aimed at restructuring the debt-laden travel business and securing a rescue deal.

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It has been revealed Thomas Cook forked out over £20million to City accountants and advisers in its final days[/caption]

But the firm collapsed last month after failing to get an additional £200million. It led to the biggest repatriation of UK nationals during peacetime.

Some 9,000 staff in the UK also lost their jobs.

The doomed firm sought to put together a £900million rescue deal by splitting its business between its largest shareholder and its lenders and bondholders.

The company paid out more than £20million in fees, despite most advisers working on behalf of other parties involved in the talks, the Financial Times reports.

Shadow Chancellor John McDonnell said yesterday: “Workers and customers of Thomas Cook will look on aghast at the feeding feast that has taken place at this company by accountants and advisers whilst they have lost their wages, jobs and holidays.”

Labour MP Rachel Reeves, who chairs the business select committee, said it “raised serious questions about the role of auditors, consultants and advisers”.

She said it “highlighted concerns that all too often their interests appear at odds with their clients’ shareholders, ­customers or employees”.

Thomas Cook’s chief exec Peter Fankhauser said it would have run out of cash by October 4, if not earlier, in insolvency papers seen by the FT.

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