Travel firm Thomas Cook has reached agreement with its bankers to provide it with new access to funding. Shares in the company fell 75% on Tuesday after it said it was in talks about increasing borrowings.

It said weak consumer confidence due to political unrest in Egypt and Tunisia and floods in Thailand had hit sales. Its bankers, including Barclays, HSBC, RBS and UniCredit, have agreed to provide a new £200m facility until 30 April 2013. The new deal replaces the £100m short-term credit agreement announced on 21 October 2011.

"I am absolutely delighted that we have reached agreement and I would like to thank the banks for acting so swiftly," said group chief executive Sam Weihagen. "We will go on with what we said we were going to do some time ago, we are going to strengthen our balance sheet making sure that we will be a much stronger financial company."

At the end of September the firm's net debt was just under £900m. The new loan will take the figure to over £1bn. The company has stressed that it is not currently in breach of the terms of any of its loans, and said it wanted the new loans to "improve its resilience if trading conditions remain difficult".

Mr Weihagen said he would be reviewing the entire business which, while strong in Scandinavia and Germany, had suffered "profitability problems" in the UK. "We are working on, and actually have really started on a turnaround programme for the UK which will make it a much more efficient and much more profitable company," he said.