Thomas Cook Group says it is in discussions with its principal lending banks with regard to its facilities during the seasonal low period of cash in the business.

The company is in discussions as a result of deterioration of trading in some areas of the business in the current quarter, and of its cash and liquidity position since its year end.

“While the company currently remains in compliance with its financing covenants, it also intends to seek agreement from its lending banks to adjustments that will improve its resilience if trading conditions remain difficult,” stated the company.

As a result, the company will delay its announcement of its full year results until these discussions are concluded.

The company also mentioned that it expects to report a headline operating profit for the year ended 30 September 2011 broadly in line with previous guidance.

The company would not be issuing its full-year results as planned on Thursday. The company’s shares plummeted 75 percent yesterday.

Thomas Cook Group also reassured holidaymakers that it is business as usual as it announced fresh discussions with its banks on £100 million in extra loan facilities.

Last month, the group reached agreement with its banking group to amend the terms of its existing bank facilities to increase financial flexibility for the group. In addition, it signed a new short-term committed bank facility to provide an additional £100m of headroom around the seasonal cash low point at the end of December this year. The group that time shared that the existing credit facilities comprise a £150m amortising term loan and a £850m revolving credit facility which mature in May 2014.