Dentons advises Astaris Capital Management and other bondholders in relation to TUI’s consent solicitation

Global law firm Dentons advised Astaris Capital Management LLP and certain other bondholders in relation to TUI AG’s consent solicitation in respect of its €300 million Senior Notes due in 2021. The transaction currently represents the largest and most prominent bondholder consent solicitation against the background of COVID-19 state support for large German corporations.

TUI initiated the consent solicitation, as the additional €1.2 billion support package for TUI recently granted by state-owned development bank KfW and the German Economic Stabilization Fund (WSF) is subject to a waiver or suspension of a potential limitation of TUI’s financial indebtedness. Since such a limitation was foreseen in the terms and conditions of the Notes, it was necessary to amend them.

Astaris, as one of the bondholders, filed a successful counter-proposal to TUI’s original proposal, which modified the conditions for the requested suspension. The counter-proposal was officially endorsed by TUI and approved by the required majority of bondholders.

A Dentons team co-led by partners Andreas Ziegenhagen and Oliver Dreher advised Astaris and certain other bondholders on the consent solicitation and the successful counter-proposal.