Britain's Thomas Cook urgently needs £200 million pounds to satisfy its lenders or one of the world's oldest holiday companies could collapse in the next few days, potentially leaving hundreds of thousands of holidaymakers stranded.
The pioneer of the package holiday agreed key terms of a £900m recapitalisation plan last month with Chinese shareholder Fosun and the travel firm's banks, significantly diluting existing shareholders.
But the firm released a statement on Friday saying a last-minute demand for additional funding puts that deal at risk.
Thomas Cook employs 21,000 staff and has 600,000 customers currently on holiday, mostly from Germany, Britain and Scandinavia.
A source familiar with the negotiations said the company had "a matter of days" to find a solution.
Lenders are demanding another £200 million in underwritten funds to support Thomas Cook through its winter trading period, when cash is usually running low.
"Discussions to agree final terms on the recapitalisation and reorganisation of the company are continuing," Thomas Cook said.
Thomas Cook has struggled with competition in popular destinations, high debt levels and an unusually hot summer in 2018 which reduced last-minute bookings.
The firm has £1.7 billion of debt.
Under original terms of the plan, Fosun - whose Chinese parent owns all-inclusive holiday firm Club Med - would contribute Thomas Cook 450 million of new money in return for at least 75 percent of the tour operator business and 25 percent of the group's airline.