Condor has received a guarantee from the German federal government and the Hessian state government for a six-month bridge loan in the amount of 380 million Euros following the insolvency of its parent company, Thomas Cook Group plc, the airline reports. The commitment is still subject to approval by the European Commission, and only after the commission has taken a positive decision can the loan be disbursed. The date for the decision is still to be confirmed.
Condor said it applied for the loans in order to prevent possible liquidity bottlenecks following the insolvency of its parent company, Thomas Cook Group plc.
Since Thomas Cook filed for insolvency on Monday, Condor has been continuing is flight operations as planned.
Separately, the company said it plans 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, as well as to separate itself from Thomas Cook Group. 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, the airline said.
Thomas Cook filed for insolvency early Monday, stranding hundreds of thousands of travelers abroad. Since then, the UK’s Civil Aviation Authority has been engaged in the country’s largest repatriation effort since World War II to get the travelers home.