Condor Flugdienst GmbH today received a pledge from the German government and the Hesse state government for a six-month bridging loan of 380 million euros. This commitment is a prerequisite for an audit by the European Commission. Only after a positive decision from Brussels will the loan amount be paid out by KfW. It is not yet known when the decision from Brussels will be made.
The state guarantee for a bridging loan has been requested to prevent possible liquidity shortages on Condor resulting from the bankruptcy of Condor parent company Thomas Cook Group plc.
“4,900 employees, partners and customers of Condor thank the Federal Government and the Hessian state government for their commitment. Condor is an operationally healthy and profitable company, which will also post a positive result in the current year. Because our liquidity was used up by our insolvent parent company for the seasonally weaker booking period, we need this bridge financing for the winter. The commitment is an important step in securing our future,” said Ralf Teckentrup, Chief Executive Officer.
Fleet on schedule
Condor operations continue as planned. The highly motivated employees work around the clock to bring customers reliably to their holiday destinations all over the world and back home again.
Independence from Thomas Cook Group plc by protective shield method
In order to free itself from possible claims of the insolvent parent company Thomas Cook Group plc and to detach itself from the group, Condor Flugdienst GmbH intends to file an application for the opening of a protective shield process.
“As a profitable company with positive cash flow and good business development, we are freeing ourselves from the possible claims of our English parent company Thomas Cook Group plc.
In the current situation, this step is the best for our customers, our business partners and for us. Because we gain full independence from the Thomas Cook Group plc and more security for our future. It is a formally necessary and logical step for us.
Our business is proceeding according to plan, and we continue to ensure that our guests reach their destination safely and reliably, “said Ralf Teckentrup, CEO. “Our fleet is operational and ticket sales for Condor flights continue as normal.”
The protective shield procedure is a peculiarity of the German insolvency law, which can be granted in cases with a positive prospect of a successful restructuring of court. In addition, a provisional committee of creditors will be appointed to represent the major creditor groups such as suppliers, employees and airport operators.
24 September 2019 | 19:27