Thomas Cook shares up 17% on new banking agreement

Shares in travel firm Thomas Cook have risen 17% after it announced a new £100m credit agreement with its bankers.

The firm confirmed it has changed the terms of its banking agreement to give it a financial buffer in December - traditionally a cash low point.

Thomas Cook shares rose 17% to 53p in early trading following the news.

It added that the terms of an existing £150m loan and a £850m credit facility have been amended to help cash flow.

The firm, which issued three profit warnings this year, has struggled with a slump in bookings following unrest in the Arab world.

In May, it revealed it lost £22m after cancelling 160,000 holidays to Egypt and Tunisia following the countries' political unrest.