Lot mother PGL is suffering from the corona crisis. Therefore, according to a report, it makes high new demands for the Condor takeover that could prevent a deal.
Everything seemed to be in a bag. In January PGL announced Polska Grupa Lotnicza to take over Condor. In addition to fleet renewal, the Lot mother also outlined expansion plans for the future German subsidiary.
On March 12, the creditors’ meeting approved the plan according to which the holiday plane could leave the protective shield procedure and repay the 380 million loan. But then the corona virus invaded Europe and ensured that not only Condor could fly less and less. Lot even had to shut down all operations.
Poland make “extreme demands”
In view of the Corona crisis, Condor recently endeavored to extend the deadline for repaying the loan. The holiday pilot has already made a corresponding request, it says. And that’s obviously not all. Spiegel magazine writes that the entire PGL deal is about to end.
The Poles made “extreme demands” on the German Ministry of Economic Affairs, the report said. You should try to have almost the entire investment secured by the state. According to the report, a negotiator even suspected that the hurdles were deliberately chosen very high in order to get out of the purchase contract.
Other airlines also run out of money
Even under less severe conditions, it would be questionable whether the German government would help the Poles at Condor. After all, PGL is a state-owned company. The location of the German holiday pilot is therefore uncomfortable. The deal threatens to fail and, at the same time, hardly any other aviation group currently has enough money to take over another airline.
Condor would therefore have to look for financial investors rather than financiers again. Those had repeatedly shown interest. However, they too have sometimes lost a lot of money because of the stock market crash.
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