The German government will provide financial aid to customers affected by the collapse of Thomas Cook Group PLC after the company's insurance cover has proved inadequate, Reuters reported Dec. 11, citing a company statement.
"Damages that are not compensated by other parties will be settled by the federal government," the country reportedly said.
Registered claims have amounted to €250 million, which is beyond insurer Zurich Insurance Group AG's liability limit of €110 million, Reuters said, citing broadcaster ARD. Total claims could reach between €300 million and €500 million, the newswire added.
The British tour operator was forced into liquidation in late September after it failed to secure a £900 million rescue deal from shareholders and lenders. China's Fosun Tourism Group, which would have saved the company in the rescue deal, has agreed to buy the Thomas Cook brand and its subsidiaries for £11 million.
Thomas Cook has also sold Nordic unit Thomas Cook Northern Europe AB to a consortium of buyers called the Strawberry Group in October. The group comprises the investment vehicle of Norwegian businessman and hotel and property developer Petter Stordalen, and private equity firms Altor Fund V AB and TDR Capital.
The company's Condor Flugdienst GmbH airline business has also attracted interest from potential buyers.