IAG’s acquisition of Niki could be derailed by Fairplane petition to move insolvency proceedings to Austria - The Times
The sale of Air Berlin’s [ETR:AB1] Austrian subsidiary Niki to International Consolidated Airlines Group [LON:IAG] could be derailed on Thursday, 4 January by a petition to move Air Berlin’s insolvency proceedings from Berlin to Austria, The Times reported. The report quoted the law firm Fairplane, which said it had taken legal action to transfer Air Berlin’s insolvency proceedings to Austria.
IAG’s Spanish low-cost subsidiary Vueling confirmed on 31 December that it had agreed to acquire Niki’s assets for EUR 20m (USD 24.0m) plus the provision of liquidity of up to EUR 16.5m.
Fairplane, which is looking to recover in excess of EUR 1m that the law firm says is owed by Niki to its passengers, has argued that Austria-registered Niki was profitable but was cut off from financing when Air Berlin’s insolvency proceedings commenced in Germany last month.
The Berlin district court is to decide whether to overturn its move to hold the insolvency proceedings in Germany the item said, adding that the decision may be left to a higher court.
A court in the Austrian city of Korneuburg has been asked to launch Niki’s insolvency proceedings, the newspaper said.
The report went on to quote Air Berlin’s liquidator, Lucas Flother, who said IAG’s acquisition of Niki would be “endangered” if Fairplane succeeds in its bid to transfer the insolvency proceedings to an Austrian court.