BUSINESS Germany's Lufthansa says gov't approves 9-bln-euro rescue package

BUSINESS

Germany's Lufthansa says gov't approves 9-bln-euro rescue package

Xinhua

03:54, May 26, 2020

lufthansa.jpeg

(Photo: AP)

FRANKFURT, May 25 (Xinhua) -- German flag carrier Deutsche Lufthansa AG said Monday that the Economic Stabilization Fund (WSF) set up by the federal government has approved a stabilization package of up to 9 billion euros (9.8 billion U.S. dollars) for the company.

Lufthansa said the WSF will make silent participation of up to 5.7 billion euros in total in the company's assets, of which nearly 4.7 billion euros is classified as equity. The silent participation is unlimited in time and can be terminated by the company on a quarterly basis in whole or in part.

Two seats on the Supervisory Board are to be filled in agreement with the German government, one of which is to become a member of the Audit Committee, said the company.

While noting that the executive board supports the package, the company said the package still requires the final approval of the management board and the supervisory board. It is also subject to the approval of the European Commission, the company added. 


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