Hedge funds could reap as much as $250 million from the collapse of British tour operator Thomas Cook

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Hedge funds could reap as much as $250 million from the collapse of British tour operator Thomas Cook
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Thomas Cook filed for bankruptcy last week after a group of creditors demanded the company find an additional $250 million in funding.

While the bankruptcy of British tour operator Thomas Cook has left hundreds of thousands of travelers stranded, a group of hedge funds are poised to make as much as $250 million from the company's collapse. Funds including Sona Asset Management and XAIA Investment owned derivative investments called credit default swaps, which pay investors when a company can no longer service its debt, Bloomberg said in a report.

While the bankruptcy of British tour operator Thomas Cook has left hundreds of thousands of travelers stranded, a group of hedge funds are poised to make as much as $250 million from the company's collapse. Funds including Sona Asset Management and XAIA Investment owned derivative investments called credit default swaps, which pay investors when a company can no longer service its debt, Bloomberg said in a report.

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