The plans of FTI Group's designated buyer, Certares, to hope for a debt haircut for the company could be dashed. According to Handelsblatt, it is unlikely that the federal government will waive the repayment of the loans that were paid out as part of the currency stabilization fund.
In a non-public meeting of the Bundestag Tourism Committee, a report from the Federal Government regarding the possible willingness to waive the repayment money for FTI was discussed. However, the Federal Ministry of Finance has announced in advance that it does not intend to waive the repayment of the stabilization measures. This decision could dash hopes of a debt haircut, as Anja Karliczek, the tourism policy spokeswoman for the CDU/CSU parliamentary group, told the Handelsblatt.
There had been speculation in the industry for weeks that Certares had tried to cut debt for the FTI Group. However, most market observers have expressed doubts that such a deal could go ahead. It now remains to be seen how Certares, which acquired the FTI Group for a symbolic euro, will deal with the debt burden of around 600 million euros. Certares had announced that it wanted to invest 125 million euros, but the future of FTI within the investor's extensive network of tourism investments remains unclear.
and 