A bailout is on the table for Lufthansa.
Yesterday, Lufthansa announced that it is in talks with the German government to obtain a bailout worth 9 billion Euros.
Lufthansa is in desperate need of money because since the pandemic started, the company spends around 800 million Euros per month to support its grounded fleet. Three hundred aircraft will be grounded in 2021 because they expect a rebound in demand for flights.
Of course, if approved, the deal would come with strings attached. Rumor has it that the government will be part of the company’s supervisory board, but it will vote only in an exceptional situation such as a takeover.
The bailout package consists of 3 billion Euros loan, the government holding a seat in the board, and 20% worth of shares stake. Moreover, the government will receive 5% worth of convertible bonds and one extra share.
Lufthansa thickens the line of air carriers that need help, such as Air-France KLM, American Airlines, United Airlines, and Delta. The American airlines have already received a $25 billion aid package, but they are still facing bankruptcy.
The deal will come in force once the European Commission approves it.
The stock price gained 8.3% during yesterday’s trading session, and another 5.6% today. Overall, Lufthansa lost almost 50% of its value this year.
Do you want to know what happened on the market lately? Stay updated with Capex.com!
Sources: reuters.com, aljazeera.com, yahoo.com
Los usuarios / lectores no deben confiar únicamente en la información presentada aquí y deben hacer su propia investigación / análisis leyendo también la investigación subyacente real. El contenido adjunto es genérico y no tiene en cuenta las circunstancias personales, la experiencia de inversión o la situación financiera actual.
Por lo tanto, Key Way Investments Ltd no aceptará ninguna responsabilidad por las pérdidas de los comerciantes debido al uso y el contenido de la información presentada en este documento. El rendimiento pasado no es un indicador confiable de resultados futuros.