Germany Approves €9bn Rescue Package for Lufthansa
The Economic Stabilization Fund (WSF) of the Federal Republic of Germany has approved a package with stabilization measures and loans of up to 9 billion euros to Lufthansa, the German airline said on Monday.
The stabilization package is aimed to cushion the blow Lufthansa received due to the Covid-19 travel restrictions which had a significant impact on its business.
According to an announcement, Germany’s WSF will take non-voting holdings in return for 5.7 billion euros in total in the assets of Deutsche Lufthansa AG and 300 million euros in share purchases.
The stabilization measures are supplemented by a credit line of up to 3 billion euros with the participation of Germany’s state-owned development bank KfW and private banks with a term of three years.
The announcement adds that the government fund would this way get a 20 percent stake in the company’s share capital.
In addition, the German government fund will get two seats on the board of directors of Deutsche Lufthansa AG, one of which would be on the audit committee. The WSF will not exercise its voting rights at shareholder meetings except in the event of a takeover, Deutsche Lufthansa AG said.
The stabilization package of Deutsche Lufthansa AG still requires the final approval of the management board and the supervisory board of the company.
It is also subject to the approval of the European Commission.