Thomas Cook collapse

'We had to pay for our wedding twice'
A couple from Moneymore had to pay for their wedding in Cyprus again when Thomas Cook collapsed.

Thomas Cook rescue 'throwing good money after bad'

Andrea Leadsom
Parliament Live TV

Business Secretary Andrea Leadsom is up in front of the business committee, and she is being quizzed on Thomas Cook.

When asked why the government didn't put up £250m to keep the firm afloat, Ms Leadsom says:

"The Treasury looked very carefully into the case, and it was quite clearly the £200m+... that the company was looking for would only have dealt with it in the short term, and they were carrying significant amounts of debt, and it was simply the case that it would be throwing good money after bad.

BEIS hearing over

So the Thomas Cook hearing has ended now.

Rachel Reeves says the committee is calling other witnesses, she finishes this hearing by talking about a "series of misjudgements" by management.

Watch: Fankhauser on his bonus

Thomas Cook ex-boss on bonus: 'It's not up to me'

What bonuses can be clawed back?

Warren Tucker, who is also a non-executive director at the Foreign and Commonwealth Office, has been asked by the MPs on the BEIS committee how much of the bonuses paid at Thomas Cook can be clawed back.

He said that Peter Fankhauser, the chief executive, had been paid £1.7m in bonues, one third of which had been lost.

The rest of bonus for 2017 can be clawed back which is worth £558,000

Some £4m of shares are worthless, he said.

Would you give your pay to staff?

The former boss of Thomas Cook is asked at the BEIS committee hearing if he would give up some of his pay to help staff, who were affected disproportionately by the collapse of the tour operator.

"I don't try to defend my pay in comparison to workers' salary. That is not my intention. "What I can [say is] I worked exhaustively and extremely hard for my salary. I didn't succeed and I said that I'm going to consider that. I'm not going to decide that today," said Peter Fankhauser.

The former chairman Frank Meysman said he had served "with pleasure" and also spent his own money on buying shares.

Warren Tucker who chaired the remuneration committee said that with hindsight too much of the pay was related to profits not to cash flow generation.

With hindsight, though, 2% pay rises would not have been paid.

Thomas Cook ex-boss 'We could have had a new start'

Peter Fankhauser, former Thomas Cook boss, says at the hearing with MPs that meetings were first held with Grant Shapps, transport minister, on 9 September and that if the government had backed the plan, the company would have survived.

Would that have been in the taxpayer interest?

"[In] this request, we made an estimate how much could the collapse of Thomas cook cost, that was far higher than what we requested," he says, but adds "I honestly don't dare to criticise the government"

"I firmly believe that after the recapitalisation... we would have had a new start".

In the end, he said, the government did want to create a precident.

"I was awfully sad [when the government said no]... I knew I would have to throw in the towel".

The chairman said he did not have any contact with the UK government.

The chief executive said he had contact with five other governments potentially affected by the collapse - in the days before it collapsed - but not with UK ministers.

But, he said, there had not been contact with the UK government after 16 and 17 September.

Mr Fankhauser said he was advised not to approach the business department and deal with the transport department.

The business collapsed on 23 September.