Frankfurt, 24 September 2019 - Condor Flugdienst GmbH today received a guarantee from the German government and the Hessian State Government for a six-month bridging loan to the amount of 380 million euros. This commitment is subject to approval by the European Commission. Only after the European Commission has taken a positive decision can the loan by German Development Loan Corporation KfW be disbursed. The date for the decision is still to be confirmed. The State guarantee for a bridging loan was applied for in order to prevent possible liquidity bottlenecks at Condor, resulting from the insolvency of its former British parent company, Thomas Cook Group plc.
"4,900 Condor employees, partners, suppliers and customers thank the German Government and the Hessian State Government for this decision. Condor is a healthy and profitable company, which will also record a positive result in the current year. Because our liquidity for the seasonal weaker winter booking period was used up by our insolvent parent company, we need this bridge financing for the coming winter season. This decision is an important step towards securing our future of our business," said Ralf Teckentrup, CEO of Condor Flugdienst.
Fleet in operation on schedule
The flight operations of the Condor are continuing as planned. The highly motivated employees work with full dedication to fly Condor customers reliably to their holiday destinations all over the world and back home.
Separation from Thomas Cook Group plc. through protective shielding procedures
Condor Flugdienst GmbH intends to file an application for the opening of a protective shielding procedure in order to protect itself from possible claims of the insolvent parent company, Thomas Cook Group plc and to separate itself from the Group.
"As a profitable company with a positive cash flow and good business development, we are using the shielding procedure to protect ourselves from possible claims of our former British parent company, Thomas Cook Group plc.
In the current situation, this step is the best for our customers, our business partners, suppliers and for us. It gives us full independence from Thomas Cook Group plc and more security for our future. It is a formally necessary and logical step for us. Our business operations continue as planned and we will continue to ensure that our guests reach their destination safely and reliably," says Ralf Teckentrup, CEO of Condor Flugdienst. "Our fleet is operating and ticket sales for Condor flights continue as normal.”
The protective shield procedure is a special proceeding of German insolvency law, which can be granted in cases with a positive prospect of a successful restructuring by the court. In addition, a provisional creditors' committee will be appointed to which the main creditor groups such as suppliers, employees and airports will be represented.
About Condor Flugdienst GmbH
Condor Flugdienst GmbH is flying its guests to the most beautiful holiday destinations in the world since 1956. Every year, 8 million passengers fly with Condor from eight German airports to over 100 destinations in Europe, Africa and America. In the financial year 2018/19, Condor Flugdienst GmbH generated an operating profit of 43 million euros and a turnover of around 1.8 billion euros. Germany’s most popular leisure airline operates a fleet of 58 aircraft. All aircraft are maintained by the subsidiary Condor Technik GmbH in accordance with the highest safety standards at the Frankfurt and Düsseldorf locations. Further information can be found at www.condor.com.