The European Commission has initiated an in-depth investigation into Germany’s restructuring aid of €321.2m to Condor in response to a complaint by Ryanair to determine compliance with EU state aid rules, following the annulment of the initial approval by the European General Court in May.
The restructuring aid was provided to help Condor recover from insolvency following the bankruptcy of its parent company, Thomas Cook Group, and included a debt write-off and restructuring of a state-guaranteed public loan from the German development bank KfW.
The General Court criticized the Commission for not evaluating if Germany received adequate compensation for debt write-offs, emphasizing the need for proper burden sharing by former shareholders and debt holders.
Condor remains confident in the outcome of the investigation, stating that the judgement and proceedings have no immediate impact on its business operations, with the investigation focusing on the state’s participation in Condor’s future value gains as highlighted by the court ruling.
