Rüdiger Wienberg, the temporary insolvency administrator for Germania Fluggesellschaft mbH, today presented the status of the investor process so far to the interim creditors‘ committee. The creditors voted unanimously in favour of an investor solution.
“As revealed by the company’s figures, the core part of Germania merits a bailout; this is also evidenced by the high level of interest shown by investors”, Mr Wienberg stressed. Currently over 30 parties are interested. Already more than 10 of them have signed a confidentiality agreement and are currently checking the company’s figures and data as part of due diligence. Most of the parties showing an interest are strategic investors – in other words, companies from the same sector. Mr Wienberg did not give any further details due to the fact that the negotiations with investors are subject to strict secrecy.
One possible restructuring scenario which presents itself foremost is to concentrate on lucrative routes using a smaller fleet. “Not all the Germania routes are loss-making”, Mr Wienberg said. “The insolvency procedure offers investors the possibility of taking over the viable part of the business with the profitable slots but minus the inherited liabilities.”
The crucial factor is to ensure that the airline remains operational. This requires that Germania should remain capable of keeping aircraft, crews and maintenance services ready to deploy. Mr Wienberg and his team are therefore in constant contact with the LBA (Germany’s federal aviation authority) and Fluko (Germany’s airport coordinator), the latter being responsible for allocating take-off and landing slots. “The cooperation has proved very constructive”, according to Mr Wienberg. “The good feedback from the investor process is obviously a helpful signal in this case.”
Moreover, most of the aircraft leasing companies are continuing to collaborate with the insolvent company. Twenty-two of a total twenty-seven aircraft belonging to Germania Fluggesellschaft mbH remain available and in technical terms are ready for immediate operation. “In the case of an investor solution, we could put the vast majority of flight operations into action at short notice”, says Mr Wienberg.
During the next few days, the investor process is to be expedited rapidly. “It is clear that the passing of time will not serve to improve the prospects of resuming flight operations”, according to the temporary insolvency administrator. “We are negotiating under critical time constraints.”
Germania filed for insolvency on 4 February. The interim insolvency proceedings relate to the companies Germania Fluggesellschaft mbH (1,426 employees), Germania Technik Brandenburg mbH (178 employees) and Germania Flugdienste GmbH (74 employees). The Swiss Germania Flug AG and Bulgarian Eagle are not affected by the insolvency.
Germania is an independent German airline with a history that goes back more than 30 years. The airline with the green and white logo carries more than 4 million passengers per year on short-haul and medium-haul flights. Germania offers connections from 18 departure airports in Europe to over 60 destinations within the continent, in North Africa and the Middle East. Reversing the common industry trend, Germania continues to offer complimentary snacks, soft drinks, magazines and a minimum of 20 kg free baggage allowance. Germania’s business model combines scheduled, charter and ad-hoc flights. Together with Bulgarian Eagle and the Swiss airline Germania Flug AG, Germania operates a fleet of currently 37 aircraft. Germania Technik Brandenburg GmbH is responsible for the company's aircraft maintenance. www.flygermania.com
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hww hermann wienberg wilhelm is one of the leading service providers specialising in legal advice, restructuring, insolvency and receivership in Germany. With several hundreds of employees, hww is represented in more than 20 cities in Germany and has its own international network. Insolvency administrators from hww hermann wienberg wilhelm have been appointed by numerous insolvency courts throughout Germany in thousands of insolvency proceedings over the years. High-profile proceedings involving the law firm include the insolvencies of Holzmann, Karman, Q.Cells, topbonus and SOLON. www.hww.eu
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