FTI insolvency: Creditors are demanding almost a billion euros back!

FTI insolvency: Creditors are demanding almost a billion euros back!

The Munich travel provider FTI filed for bankruptcy in June 2024 and is facing enormous financial challenges. A year after filing for bankruptcy, the package travelers affected have mostly received their money back, but the financial complications remain complex. Loud t online Around 172,000 applications were processed and a total of 245 million euros were paid out. This means that around 90 percent of holidaymakers who had already made payments for trips received their money from the German Travel Insurance Fund (DRSF). However, numerous complex reclaims are still being processed, as around 6,000 applications still need to be examined.

The insolvency process is associated with many challenges. Insolvency administrator Axel Bierbach reports that the satisfaction rate, i.e. the proportion of claims that can actually be paid out, is expected to be in the single-digit percentage range. A total of 73,000 creditors have filed claims of almost one billion euros from the FTI insolvency. The situation is not made any easier by the company's complex structure, as FTI had 110 domestic and foreign companies and employed around 11,000 people.

Hotel sales and job security

Despite the difficult situation, FTI was able to secure some jobs by selling some assets. Of a total of 54 hotels that belonged to the group, seven have been sold, while the sale process of two others is ongoing. So far only one hotel has had to close, although this is not solely due to bankruptcy. These hotel sales are expected to save around 3,500 jobs. Still, the revenue rate remains unclear and winding down the company will likely take years.

However, there is little prospect of repayment for the 350,000 creditors. Most creditors are package holidaymakers, while impacts will be felt on around 2,500 hotels, travel agencies, airlines and banks. FTI is now being fully wound down and many customers have already been referred to rival companies such as TUI and DERTOUR. The first creditors' meeting will take place on November 20th in Munich, with low attendance expected.

FTI's bankruptcy is not only a massive challenge for affected travelers, but also raises questions about the company's financial future. The financial conditions outlined at the beginning of the process and the ongoing uncertainties make it clear that the processing involves considerable effort and will cause concerns for the affected travelers for a long time. This case is another example of the serious impact of the corona pandemic on the travel industry.