Noerr advises Condor on protective shield proceedings and takeover by LOT

Noerr has advised Condor Flugdienst GmbH on its announced takeover by Polish Aviation Group (PGL), the owner of LOT Polish Airlines (LOT). This paves the way for a successful conclusion of the protective shield proceedings. The Noerr team was led by Thomas Hoffmann, who co-heads the firm’s Restructuring & Insolvency practice.

The combination of LOT and Condor will create one of the leading European aviation groups carrying about 20 million passengers per year. Condor will continue to act under its current leadership while gaining from expanded connectivity and operational synergies between the airlines. Condor customers will continue to benefit from the quality, service and reliability of Condor, which have made the company the premier brand for leisure travel and the preferred partner for tour operators in Germany and beyond.

The offer to acquire Condor submitted by PGL has been selected as the most attractive for Condor, its employees, partners, suppliers and customers. The transaction is expected to close by April 2020 once customary antitrust approvals are obtained and Condor exits the protective shield proceedings. PGL’s investment will allow Condor to fully repay the loan received from KfW.

PGL is the leading aviation company in Central and Eastern Europe and owns LOT Polish Airlines – one of the oldest and fastest growing carriers in Europe. PGL group generated revenues of around 1.9 billion euros in 2019. In the 2018/19 financial year, Condor Flugdienst generated sales of around 1.7 billion euros.

Noerr has advised Condor for many years, such as in the bidding process regarding the insolvent airlines Air Berlin and Niki. Following the collapse of the former group parent Thomas Cook Group plc, Noerr has assisted Condor in both initiating and implementing the protective shield proceedings. Noerr’s engagement covered the negotiations for the granting of KfW public rescue aid, legal support throughout the investor process now successfully completed as well as the now pending implementation in the insolvency plan proceedings.

“We are very pleased that we could assist our long-standing client Condor in its takeover by LOT and in the company’s complex restructuring, which can now be successfully completed“, says Thomas Hoffmann.

Upon Condor’s application, on 26 September 2019 the Local Court in Frankfurt am Main ordered the initiation of protective shield proceedings and appointed attorney Professor Lucas F. Flöther as administrator.

Advisor to Condor Flugdienst GmbH: Noerr LLP

Dr Thomas Hoffmann (Insolvency, team lead, Berlin), Marlies Raschke (Insolvency, Dresden), Dr Till Kosche (M&A, Frankfurt), Sarah Blazek, Helge Heinrich (both State Aid, Munich), Andreas Naujoks, Dr Torsten Wehrhahn (both Financing, Frankfurt) Simone Schönen (Insolvency, Hamburg), Dr Torsten Kraul (IT, Berlin), Emma Lenze (UK Contract Law, Munich), Dr Tobias Dolde (IP, Alicante), Ethel Nanaeva (M&A, Berlin), Dr Hans-Christoph Schimmelpfennig, Dr Benjamin Jahn (both Employment & Pensions, Munich)

Associates: Dr Andrea Braun (Insolvency, Frankfurt), Eike Hofmann (Insolvency, Dresden), Dr Kenny Koa (Insolvency, Berlin), Dr Dorian Legel (Financing, Frankfurt), Dr Daniel Dommermuth-Alhäuser, Dr Michael Wilhelm Weber (both Employment & Pensions, Munich)