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Lufthansa says is seeking 9 billion euro bailout

Published 05/07/2020, 09:40 AM
Updated 05/07/2020, 09:55 AM
© Reuters. FILE PHOTO: Planes of German carrier Lufthansa are parked on a closed runway in Frankfurt

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.

Latest comments

The Luftwaffe wants to evaporate 9 billion euro, nice
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