An Austrian court in Korneuburg has ruled that the NIKI insolvency proceedings and asset sale should restart from scratch, further casting doubt on International Airlines Group (IAG) acquiring NIKI.

NIKI—which filed for insolvency Dec. 13, 2017 and abruptly ceased operations—sealed a deal at the end of December to be acquired by IAG for €20 million ($24 million). However, that was based on insolvency proceedings taking place in Germany. A Berlin regional court ruled earlier this week that bankruptcy proceedings should be conducted in Austria rather than in Germany.

The Austrian court then ruled Jan. 12 this meant the IAG deal should be voided and proceedings should begin anew, which could open the door for TUIfly, Thomas Cook (Condor) and the founder of NIKI, Niki Lauda, to offer new bids for NIKI’s assets.

According to news reports from Austria, the Austrian court ruling is likely to trigger a new round of legal challenges.

Kurt Hofmann