In the “air” 7,500 tourists in Greece after the “cannon” FTI – owes 1.8 million euros since last year

The mechanism of the Ministry of Tourism is on high alert after today’s developments in the bankruptcy filing of the international travel organizer from Germany FTI, as the primary concern is the safe return of foreign travelers present in Greece who came with German tour operators.

The EOT office in Germany is already holding ongoing meetings, while in Athens the Ministry of Tourism and the responsible minister Olga Kefalogianni are on an open line with all concerned.

There are currently 7,500 foreign visitors in Greece and they have come to our country through the international travel regulator from Germany, FTI, which filed for bankruptcy earlier today.

According to reliable information, the 7,500 visitors who have come to Greece so far will return to their place of residence when they finish their scheduled vacation.

According to information from FTI, there are currently 7,500 tourists in about 250 hotels in the country. We understand colleagues’ concerns and recommend calm. We are monitoring developments closely. In the coming period we will be able to get a clearer picture. #Fast Track Initiative

— Yannis Hatzis, CFA (@hatzis_) June 3, 2024

What is certain is that their vacations will not be affected by the bankruptcy of international tour operators, and this is confirmed by the relevant agencies.

In fact, the country’s hoteliers who host them in Greece will, at their own expense, transport them to Greek airports. At the same time, the current development will be without financial loss for hoteliers who cooperate with FTI, since as is known, these hotels have been prepaid for the access of FTI clients so far.

After all, since last year, Greek professionals in this sector had suspected that something was not right with the specific travel organizer. However, there are approximately 300 hotels in Greece, to which FTI owes a total of around €1.8 million, compared to the previous year.

The rescue attempt failed

Workers were informed of the developments via video conference this morning, but booking systems were already down due to a suspected technical issue. The website of FTI’s Labranda hotel chain has also been down since the morning.

According to information from BILD, the FTI administration was all weekend in negotiations with the Ministries of Economy and Finance, with the aim of covering a funding gap amounting to double digits in the millions, in order to get through the summer. The federal government finally rejected the company’s request yesterday evening, Sunday, which led to it declaring bankruptcy.

Munich-based FTI was already struggling before the coronavirus pandemic and managed to survive with just €595 million from the government’s Economic Stabilization Fund (WSF) and an additional €280 million it received from UniCredit, before that which was guaranteed by the federal government. And the European Investment Bank. State of Bavaria.

Last April, saving the company seemed possible, as the American investment company Centares announced that it would buy it, assuming its debts amounting to one billion euros, and providing an additional 125 million euros of new funds. The process was delayed because the Federal Office of Cartels was not going to approve the purchase until August or September at the earliest, so FTI needed money to see it through the summer.

The company announced that efforts are being made so that those who are already on vacation can complete it normally and return without problem, while the Travel Insurance Fund will pledge to refund advance payments for packages that will eventually be cancelled. The fund was established in 2019, after the bankruptcy of the Thomas Cook group.

FTI Group Announcement

FTI announced that it ‘is filing for insolvency on Monday 3 June 2024. Other group companies will also file for insolvency in the coming days. A direct contact hotline and a website containing frequently asked questions have been established for all clients of the Travel Agent Group.’

The official announcement stated the following:

FTI Touristik GmbH, the parent company of FTI GROUP which is the third largest travel operator in Europe, will file to initiate insolvency proceedings in the Munich Regional Court on Monday 3 June 2024.

Initially, only the travel agency FTI Touristik is directly affected by this matter.

However, corresponding applications will then be submitted to other companies in the group.

Windrose Finest Travel GmbH with the luxury brand WINDROSE will continue its activities.

The independent companies Euvia GmbH and the travel shopping channel sonnenklar.TV as well as the franchise system of Touristik Vertriebsgesellschaft mbH (TVG) with the brands sonnenklar.TV Reisebüros, 5vorFlug Reisebüros and Flugbörse do not belong to the FTI Group.

After a long and complex investment process, the entry of a group of investors was announced in April 2024. But since then, bookings have remained well below expectations despite the positive news. In addition, many suppliers insisted on payment in advance. As a result, the need for liquidity has increased, which can no longer be met until the investment process is closed. Therefore, filing for bankruptcy has become necessary for legal reasons.