Lot’s mother PGL apparently tries to get out of the purchase contract for Condor – and also uses tactical maneuvers. Will the German state step in at the end?
Condor actually wanted to complete its protective shield procedure at the end of March. However, on Monday (April 6), it became known that several creditors have filed an appeal against the court-approved plan. It was only on Thursday afternoon (April 9) that a spokeswoman for the judge announced that the responsible chamber had rejected the complaints. The protective shield plan is thus legally binding.
By April 15, Condor actually has to repay its loan from the state development bank KfW of over 380 million euros. However, the holiday pilot planned to meet this financial obligation following a takeover by Lot parent company PGL. And this takeover is shaking, because the Corona crisis also affects the Polish state-owned company. It was already known at the end of March that PGL is now making high demands – possibly deliberately, in order to get out of the purchase contract.
Tactical maneuvers
Now the magazine Der Spiegel, citing people who are involved in the negotiations, writes that PGL would even ask for money to do without Condor. This is the only way for the holiday aviator to find a new buyer. However, it is probably more of a kind of poker game.
PGL therefore wants to have something in hand in the event that Condor should demand fines if the deal does not materialize. So the goal could be that both sides drop their potential claims.
First the state, then a new buyer?
A Condor spokeswoman said they were “still in constructive talks with PGL to jointly assess the impact of the corona pandemic”. In addition, they applied for government support that goes beyond short-time work.
Should PGL actually withdraw from the purchase, it would be conceivable for KfW to step in with additional loans. According to Spiegel, an assignment of subscription rights by the Poles to KfW is not excluded. That would be a state stake in Condor, which has already been speculated as a possible interim solution. The big question is: How likely is it that you will find a new buyer for the airline in the foreseeable future after the Corona crisis?
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