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Lufthansa seeks to find solution over bailout terms

Lufthansa seeks to find solution over bailout terms

Mubasher: Lufthansa seeks to resolve the dispute over the terms of a EUR 9 billion bailout, according to Reuters citing the Cheif Executive of the German airline, Carsten Spohr.

Spohr's announcement came before the meeting set to be held between the airline's biggest shareholder, Heinz Hermann Thiele, and the economy minister on Monday to highlight his objections to the government's bailout, sources told the news agency.

The airline has sought a bailout as it has been heavily affected by the coronavirus (COVID-19) pandemic, which led to the suspension of flights across the world.

Thiele, who owns 15.5% of Lufthansa’s shares, has objected to the government's request to acquire a 20% stake in the airline, as part of the bailout's terms.

Therefore, the billionaire shareholder proposed indirect participation of the government through state-owned German development bank KfW.

Spohr commented in a letter to employees that intense talks are being held between the shareholders, accounting for 38% of the company’s capital, and the government to find a "satisfactory" solution.

If the shareholders have not approved the bailout, the company will be forced to seek protection from creditors under German insolvency law.