TUI AG receives second €1.2 billion government lifeline

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Written by Kari Reinikainen Kari Reinikainen

Category: Top Headlines Top Headlines

Published: 30 September 2020 30 September 2020

The Hannover based tour operator TUI Group said it has fulfilled another condition for the provision of a second stabilisation package by the German federal government that provides it with liquidity to survive over the forthcoming winter.

“Following the approval by the holders of the Senior Notes to waive certain bond conditions at the beginning of September, the German Economic Stabilisation Fund (Wirtschaftsstabilisierungsfonds, WSF) has now subscribed to the Group's warrant bond with a volume of 150 million euros as planned. Both conditions had to be fulfilled by 30 September 2020,” the company said in a statement.

TUI has a 50% stake in TUI Cruises, including Hapag-lloyd Kreutzfahrten, in Germany and owns in full Marella Cruises in the UK. It has a major network of travel shops in many countries and it is a major retailer of cruises of other lines as well.

With the proceeds from the bond with warrants and the increase in the KfW credit line of €1.05 billion, TUI Group will have a further 1.2 billion euros at its disposal. Including this second stabilisation package, TUI will then have financial resources of around €2.0 billion. The package ensures sufficient liquidity to cover the seasonal fluctuations over winter 2020-21 and also strengthens the Group's position in the current volatile market environment.

Fritz Joussen, CEO of the TUI Group: "We continue to operate in a very volatile market environment. Travel advice and travel disruptions in our markets and destinations are constantly changing. There are still significant restrictions on worldwide travel through COVID-19 and on our business.”

“This makes planning more difficult and requires enormous flexibility from tour operators. The increased stabilisation package with government loans will above all secure liquidity during the pandemic. We have to bridge this period without any significant turnover and at the same time accelerate the restructuring for the post-COVID-19 period.”

“TUI will become more digital and efficient. In addition, we want to continue to set standards for more sustainability in tourism in the future, even if the current focus has to be on overcoming the crisis," Joussen said.

In March 2020, TUI received the commitment for an initial stabilisation package. The KfW tranche of 1.8 billion euros was used to top up TUI's existing bank revolving credit facility ("RCF"). Two conditions were met for the second stabilisation package: the existing creditors of the bond due in October 2021 waived a possible future limit on financial indebtedness. In addition, TUI is issuing a bond with warrants, which will be subscribed exclusively by the WSF.

Greek authorities confirm: no cases of COVID-19 on board – cruise of Mein Schiff 6 continues as planned

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Written by Teijo Niemelä Teijo Niemelä

Category: Top Headlines Top Headlines

Published: 29 September 2020 29 September 2020

After a successful start with cruises from German ports with satisfied guests and without incidents, the German shipping company TUI Cruises is the first cruise operator to offer cruises in Greece since 13 September. This was preceded by close coordination of the hygiene and safety concept with the Greek authorities involved. The handling of the unclear test results of crew members reported yesterday now once again confirms the processes agreed with the authorities for the resumption of the cruise business and proves that cruises are possible in times of Corona. Following a false alarm caused by a report of 12 positive test results on crew by a land-based laboratory, three further tests, including two PCR tests and one antigen test, have confirmed the results: There are no cases of COVID-19 on board Mein Schiff 6. This was confirmed by the Greek authorities this afternoon.

"The safety of the guests, the crew, but also the Greek population is the top priority for TUI Cruises. I would like to thank all the responsible authorities for their good and professional cooperation in connection with the unclear test results on board Mein Schiff 6 and I am pleased that the voyage can be continued for all guests tomorrow with shore excursions in Piraeus" said Wybcke Meier, CEO of TUI Cruises.

About the hygiene- and health concept of TUI Cruises

For the resumption of cruise operations in times of Corona, TUI Cruises has developed a health and hygiene concept together with medical experts and adapted all processes before and during the cruise (including mandatory health questionnaire, mandatory PCR test before the cruise, daily temperature checks for guests and crew), at check-in (including mandatory digital check-in, staggered check-in times) and in the guest and crew areas to comply with hygiene and distance regulations. In order to comply with the distance regulations on land, the passenger capacity on board is limited to a maximum of 60 percent; only balcony cabins and suites will be occupied. Already existing and very high hygiene standards were supplemented by additional cleaning and disinfection measures. TUI Cruises is also prepared for emergencies.

Existing structures and already very strict measures to prevent the spread of viral diseases have been further tightened and adapted to the current situation. Each ship has always had its own on-board hospital with trained personnel. All precautionary measures are based on the medical standards of renowned institutions such as the German Robert Koch Institute (RKI), the World Health Organization (WHO) and comply with the guidelines of the Greek authorities for resuming cruise operations.

The Mein Schiff 6 is currently sailing in Greece with 922 guests and 666 crew members. The cruise started on Sunday, September 27th in Heraklion/Crete and will continue after shore excursions in Piraeus tomorrow with a planned stop at Corfu.