Multitudes of stranded FTI travelers regained their lost funds from the collapsed travel firm; however, numerous debtors remain uncompensated.
German Travel Insurance Fund Disburses Compensation to Most FTI Travelers
After filing for bankruptcy a year ago, the German Travel Security Fund (DRSF) has managed to process and pay out approximately 245 million euros to around 172,000 affected customers of the insolvent Munich-based travel provider FTI.
Despite the progress, there are still roughly 6,000 claims left to handle, involving complex or legally complicated bookings. These cases include about 1,000 modular bookings, 1,900 agency bookings in FTI's main markets, and around 1,100 bookings that require further legal evaluation. DRSF expects to settle these cases within the coming weeks, but approximately 2,000 applications remain unresolved due to missing references or documentation from the affected customers.
The outlook for other creditors such as suppliers, agencies, and other creditors offers a less promising picture. Insolvency administrator Axel Bierbach shared that "the quota will be very low." He anticipates that only a small fraction of creditors will receive payment.
Despite the ongoing insolvency proceedings, there have been some positive developments for the 54 hotels owned by the FTI group. Seven hotels have already been sold, and the sales process is ongoing for an additional two. The remaining hotels are expected to be sold by the end of the year. These sales are estimated to save around 3,500 jobs, although the exact financial returns are still uncertain.
This update on the FTI insolvency case provides insight into the progress made by the DRSF in reimbursing affected customers, the complexities of handling outstanding claims, and the uncertain prospects for creditors beyond package tourists. The compensation process is expected to continue for the near future as FTI and related subsidiaries continue to impact various stakeholders in the travel sector.
Other creditors, such as suppliers and agencies, may find it challenging to secure finance as the quota for payments appears to be very low. In the world of business and finance, it seems that complexities and uncertainties are still prevalent in settling the outstanding claims of FTI.
