Bailout: Lufthansa secures EUR 9 billion rescue deal from German government

Date 25.5.2020

Deutsche Lufthansa AG has been informed by the Economic Stabilization Fund (WSF) of the Federal Republic of Germany that the WSF has approved the stabilization package for the company. The Executive Board also supports the package.

The package provides for stabilization measures and loans of up to EUR 9 billion.

The WSF will make silent participations of up to 5.7 billion euros in total in the assets of Deutsche Lufthansa AG. Of this amount, approximately EUR 4.7 billion is classified as equity in accordance with the provisions of the German Commercial Code (HGB) and IFRS. In this amount, the silent participation is unlimited in time and can be terminated by the company on a quarterly basis in whole or in part. In accordance with the agreed concept, the remuneration on the silent participations is 4% for the years 2020 and 2021, and rises in the following years to 9.5% in 2027.

Furthermore, the WSF will subscribe to shares by way of a capital increase in order to build up a 20% stake in the share capital of Deutsche Lufthansa AG. The subscription price will be 2.56 Euro per share, so that the cash contribution will amount to about 300 million Euro. The WSF may also increase its stake to 25% plus one share in the event of a takeover of the company.

In addition, in the event of non-payment of remuneration by the Company, a further portion of the silent participation is to be convertible into a further shareholding of 5% of the share capital at the earliest from 2024 and 2026 respectively. The second conversion option, however, only applies to the extent that the WSF has not previously increased its shareholding in connection with the above-mentioned takeover case. Conversion should also be possible for dilution protection. Subject to the full repayment of the silent participations by the company and a minimum sale price of EUR 2.56 per share plus an annual interest of 12%, the WSF undertakes, however, to sell its shareholding in full at the market price by 31 December 2023.

Finally, the stabilization measures are supplemented by a syndicated credit facility of up to EUR 3 billion with the participation of KfW and private banks with a term of three years. This facility is still subject to the approval of relevant bodies.

The expected conditions relate in particular to the waiver of future dividend payments and restrictions on management remuneration. In addition, 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. Except in the event of a takeover, the WSF undertakes not to exercise its voting rights at the Annual General Meeting in connection with the usual resolutions of ordinary Annual General Meetings.

The stabilization package still requires the final approval of the Management Board and the Supervisory Board of the company. Both bodies will come together shortly to adopt resolutions on the stabilization package. The capital measures are subject to the approval of an extraordinary general meeting.

Finally, the stabilization package is subject to the approval of the European Commission and any competition-related conditions.

Stay up to date

with the latest news from Aerospace!

Your email address will only ever be used for Newsletters campaings with the legal agreement of your Privacy Policy. You can change your email preferences or unsubscribe in every email if you no longer wish to receive emails from us.


TOP Interviews

A REMARKABLE JOURNEY OF RESILIENCE: A TALE OF TRIUMPH OVER TURBULENCE

A REMARKABLE JOURNEY OF RESILIENCE: A TALE OF TRIUMPH OVER TURBULENCE

Date 30.8.2023

fl_en|fl_cs

In the heart of Tussenhausen-Mattsies, a phoenix named GROB AIRCRAFT emerged in 1971. Its golden jubilee in 2021 marked not just the passage of 50 years, but a remarkable journey of innovation that continues to soar as it reaches its 52nd year in 2023. This avant-garde aircraft manufacturer, nestled amidst cutting-edge production facilities and boasting […]

Awakening the Challenger: The Unstoppable Rise of Arex Defense, Guided by The Vision of its Charismatic Leader, Tim Castagne

Awakening the Challenger: The Unstoppable Rise of Arex Defense, Guided by The Vision of its Charismatic Leader, Tim Castagne

Date 23.8.2023

fl_en|fl_cs

In the tranquil heart of Slovenia, amid enchanting landscapes and vibrant culture, emerges a promising contender in the world of defense technology. Nestled in this serene corner of Europe, Arex Defense, a company once shrouded in obscurity, is now positioned to disrupt the global defense sector with its unparalleled expertise and revolutionary products. Guiding this […]

Top Aces: Revolutionizing Air Combat Training with Elite Expertise and Next-Generation Technology

Top Aces: Revolutionizing Air Combat Training with Elite Expertise and Next-Generation Technology

Date 26.7.2023

fl_en|fl_cs

In the vast and often turbulent skies of global geopolitics, every maneuver carries an importance akin to a well-coordinated flight formation. Each decision, like a finely tuned adjustment of pitch or roll, contributes to the overall trajectory of a situation. Modern challenges, such as the escalating Ukrainian crisis, are like powerful jet streams that shape […]

Shaping Aeronautical Excellence: Blending Passion, Innovation, and Expertise at Neo Energy Aviation Academy

Shaping Aeronautical Excellence: Blending Passion, Innovation, and Expertise at Neo Energy Aviation Academy

Date 2.8.2023

fl_en|fl_cs

Situated at the intersection of fervor, strategic investment, and disruptive innovation, the Neo Energy Aviation Academy (NEA) exemplifies the future trajectory of aviation training. Central figures of the academy, Gunnar Hasse and Tom Reinert, have illuminated the genesis, goals, and transformational methodologies employed at NEA. As NEA’s Managing Director and Accountable Manager, Gunnar Hasse, and […]

Show more

Stay up to date

with the latest news from Aerospace!

Your email address will only ever be used for Newsletters campaings with the legal agreement of your Privacy Policy. You can change your email preferences or unsubscribe in every email if you no longer wish to receive emails from us.

More news

Unmanned and Unstoppable: The Emergence of UAVs in Modern Aviation

Unmanned and Unstoppable: The Emergence of UAVs in Modern Aviation

Date 19.9.2023

fl_en|fl_cs

In the past 15 years, the aviation industry has seen an unprecedented evolution. Marking significant milestones from the birth of powered flight to the advent of jet propulsion, and now embracing the electrifying era of electric-powered aircraft, the sector continues to redefine innovation. The spotlight, however, is now shining brightly on Unmanned Aerial Vehicles (UAVs). Once […]

Rising from Pandemic Challenges: ELDIS Pardubice’s Explosive Growth & Global Radar Revolution

Rising from Pandemic Challenges: ELDIS Pardubice’s Explosive Growth & Global Radar Revolution

Date 19.9.2023

fl_en|fl_cs

ELDIS Pardubice is growing, tackling new projects, and hiring employees. A side effect of the COVID-19 pandemic was the temporary suppression of air traffic, leading to a drop in revenue for air traffic control in many countries. As a result, these organizations had to cancel or postpone recruitment and dampen air transportation development. Among those […]

Neo Energy Aviation Academy: Elevating the Standards of Test Flight Training

Neo Energy Aviation Academy: Elevating the Standards of Test Flight Training

Date 11.9.2023

fl_en|fl_cs

In the ever-evolving world of aviation, staying ahead requires not only innovative technology but also superior training that prepares pilots and engineers for the challenges ahead. Neo Energy Aviation Academy, a name familiar to our readers through our previous two editions of Aerospace Central Europe (ACE), continues to redefine the standards of specialized flight training. […]

Top Aces to spotlight at DSEI 2023: meet the representatives

Top Aces to spotlight at DSEI 2023: meet the representatives

Date 11.9.2023

fl_en|fl_cs

Today’s kickoff of the DSEI conference in London is showcasing the crème de la crème of the defence and security industry, and among those in the limelight is Top Aces, a company that is redefining air combat training standards on a global scale. Having recently been featured in our publication, Aerospace Central Europe (ACE), the […]

Pilot training and aerial mastery: FUTURE AIR FORCE CONFERENCE 2023

Pilot training and aerial mastery: FUTURE AIR FORCE CONFERENCE 2023

Date 1.9.2023

fl_en|fl_cs

In the rapidly evolving realm of aviation, a pioneering event is on the horizon. Aerospace Central Europe (ACE) Magazine, as a prominent European voice on pilot training, is privileged to collaborate with the Future Air Force Conference 2023. Set against the backdrop of Prague’s opulence at Hotel Lindner, this symposium promises to be an epicentre […]

Unveiling the potential of Aero’s L‑39NG in modern defense aviation

Unveiling the potential of Aero’s L‑39NG in modern defense aviation

Date 8.8.2023

fl_en|fl_cs

In the realm of aviation, various aircraft fill the skies, each with its unique purpose and capability. Among these, Aero’s L‑39NG, emerging from the heritage of the iconic L-39 series, holds a special place, standing as a testament to over a hundred years of aviation tradition in the heart of Europe. The L‑39NG represents Aero’s […]

Show more
Subscribe to our magazineRegister now