Air Berlin PLC –  Report on the creditors’ meeting in the insolvency proceedings of Air Berlin PLC of 25. January 2018

Munich, 26. January 2018 – Report of the joint representative KEOS GbR (“KEOS”) on the creditors' meeting in the insolvency proceedings of Air Berlin PLC on 25. January 2018.

The joint representative KEOS participated in the creditors’ meeting of Air Berlin PLC on 25. January 2018 and represented the rights of the bondholders of the EUR 225 million, 2011/2018, 8.250% bond issued by Air Berlin PLC (the "Bond" / ISIN: DE000AB100B4 / WKN: AB100B).

The previous authorised representative Dr. Frank Kebekus of Air Berlin PLC and the previously appointed trustee Prof. Dr. Lucas Flöther, who, following the end of the debtor-in-possession proceedings was appointed as insolvency administrator of Air Berlin PLC, presented their report at the creditors’ meeting yesterday. Creditors can retrieve the report after successful registration and filing of claims in the insolvency portal of the insolvency administrator www.airberlin-inso.de, or bond creditors represented by KEOS can request the report from the joint representative upon submission of a recent proof of holdings.

According to the current status of the insolvency proceedings, no or minimal recovery can be expected for the creditors of Air Berlin PLC. However, the insolvency administrator Prof. Dr. Lucas Flöther clarified that the recovery quota may change, if potential claims of Air Berlin PLC against third parties, in particular against Etihad Group arising out of a financing commitment, the so-called "letter of comfort", can be successfully asserted. For this purpose, the insolvency administrator Prof. Dr. Flöther has already obtained various expert opinions from reputable lawyers, in which they have examined the chances of success of any litigation against the Etihad Group. At the same time, the possibilities of litigation funding for a lawsuit against the Etihad Group are being explored, as Air Berlin PLC itself does not have the funds to conduct such lawsuit against the Etihad Group.

Prof. Dr. Lucas Flöther who has been appointed as insolvency administrator following the end of the debtor-in-possession proceedings, was confirmed in office at the creditors’ meeting.

During the election of the members of the creditors' committee the special administrator (“Sonderinsolvenzverwalter”) of Air Berlin PLC & Co. Luftverkehrs KG was given - following a controversial discussion - a vote of approximately EUR 850 million regarding the claims of Air Berlin PLC & Co. Luftverkehrs KG against Air Berlin PLC. An appeal filed by KEOS against this decision was unsuccessful.

 

Based on that number of votes attorney-at-law Andreas Ziegenhagen in its capacity as legal representative of Air Berlin Finance B.V., which served as Etihad Group's financing vehicle to the Air Berlin Group and presumably has to be considered as a subordinated creditor of Air Berlin PLC, was elected as member of the creditors' committee. The joint representative has also appealed against this decision as subordinated / shareholder related creditors may not be represented in the creditors' committee.

 

KEOS submitted requests for an extension of the agenda of the creditors' meeting, amongst others, to request for authorization of the insolvency administrator with respect to the examination of financing options for initiation of litigations in connection with the financing commitments made by Etihad Airways or Etihad Aviation Group. A vote on this request was rejected by the court, as the above stated representative of Air Berlin Finance B.V. contradicted the vote.

 

The deadline to register claims expires on 1. February 2018. Bondholders, who are not already represented by KEOS as the joint representative of the bondholders of the EUR 225 million, 2011/2018, 8.250% bond issued by Air Berlin plc, may contact KEOS to obtain support from lawyers cooperating with KEOS in registering claims arising out of other bonds.

 

KEOS will keep registered bondholders informed about the further developments and is available for questions via email at airberlin@onesquareadvisors.com. Bondholders of the Bond, who have not yet registered with us, are kindly asked to register via email or on our homepage at www.onesquareadvisors.com under the heading “Bonds” / “Air Berlin”.

 

Contact:

KEOS GbR
c/o One Square Advisory Services GmbH
Theatinerstr. 36
80333 Munich
fax          +49 89 15 989822
email     airberlin@onesquareadvisors.com
web       www.onesquareadvisors.com


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