Lufthansa says is seeking 9 billion euro bailout
Reuters
Published May 07, 2020 09:40AM ET
Updated May 07, 2020 09:55AM ET
FRANKFURT (Reuters) - Lufthansa (DE:LHAG) on Thursday said it is negotiating a 9 billion euro ($9.71 billion) "stabilisation package" with Germany's Federal Economic Stabilization Fund, confirming an earlier Reuters report.
The bailout includes a non-voting capital component, known as a so-called silent participation, a secured loan, and a capital increase which may leave the German government with a shareholding of up to 25% plus one share, the company said.
Various alternatives of a capital increase are being discussed, including an increase at the nominal value of the share, if necessary after a capital cut, Lufthansa added.
Last month Reuters reported that the airline group was seeking a 9 billion euro rescue package after travel bans grounded 700 of its aircraft, leading to a 99% drop in passenger numbers.
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Written By: Reuters
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