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Thomas Cook bosses were warned of £10bn claims

Thomas Cook bosses were warned of £10bn claims

Thomas Cook bosses were warned ahead of its collapse that creditor claims could top £10bn, as a complex network of off-balance-sheet guarantees unwound.

A confidential report, prepared just days before the 178-year-old company’s failure and seen by The Daily Telegraph, lays bare how an insolvency would wreak havoc across the travel sector, leaving huge debts owed to hoteliers, intermediaries and other suppliers.

Many suppliers could expect to ­recoup just 3.4p in every pound owed to them. Bondholders, whose debts ­totalled more than £1bn, may only ­recover 2.3p. The Thomas Cook brand, once one of the oldest and most revered names in the travel industry, was worth as little as £1.3m, the report…

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