The UK's oldest travel agent is trying to secure funds by selling assets in what Sky News has described as a 'last-ditch' survival bid.
If the company collapse, it would trigger an operation to fly more than 150,000 British holidaymakers home.
What has gone wrong?
Sky News is reporting that the travel firm has been holding emergency rescue talks this week in a bid to offload its Nordic airline and tour operating units to raise cash.
The company is facing a £200 million financial black hole after lenders demanded they secure standby funding on top of a restructuring package.
On Monday, Thomas Cook succeeded with a court application to delay a creditors' vote over the terms of a £900 million rescue funding injection until next week.
More than 20,000 jobs could be at risk, including 9,000 in the UK.
Yesterday it was reported on a US aviation site that Thomas Cook Group has filed for bankruptcy protection in America to protect the company during restructuring.
In court filings seen by Sky News last week, Thomas Cook said it was running out of cash and needed to finalise the deal quickly. “The serious liquidity issues within the group have led to an urgent need to complete any restructuring within September,” it said.
In a stock market filing, the company said meetings with creditors and skateholders are scheduled for September 27 and 30.
What to do if your holiday is cancelled? How to get your money back?
Thomas Cook holidays are ATOL (Air Travel Organiser’s Licence) protected, so if the company splits, sells and closes, ATOL protected holiday makers should not be left out of pocket.
When news of Thomas Cook's financial problems first arose earlier this year, MoneySavingExpert issued advice to travellers.
They said: "“Package holidays and city breaks which are booked directly through a travel firm, and include a flight, are covered by the Air Travel Organisers’ License (ATOL) scheme."
For more information - click here.
Earlier this year, passenger rights organisation AirHelp named Thomas Cook as the worst of 72 global airline carriers. It marked a drop of 21 places on the previous year.
Both Easyjet and Ryanair joined Thomas Cook in the bottom give. Qatar Airways came out on top.