Active Stocks
Thu Mar 28 2024 15:48:07
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  Air France-KLM poised to announce refinancing steps
BackBack

Air France-KLM poised to announce refinancing steps

Air France-KLM is expected to convert part of its 4 billion euros ($4.7 billion) in direct government loans into hybrid instruments

Photo: ReutersPremium
Photo: Reuters

The board of Air France-KLM was meeting on Monday to approve new French government-backed refinancing measures designed to see the airline group through the COVID-19 crisis, sources close to the situation said.

Air France-KLM is expected to convert part of its 4 billion euros ($4.7 billion) in direct government loans into hybrid instruments and raise new equity capital under the plans to be announced by Tuesday morning, the sources told Reuters.

The company and the French finance ministry both declined to comment on Monday.

Air France-KLM, which last year received a total of 10.4 billion euros in loans backed by France and the Netherlands, has for months been discussing a multi-stage recapitalisation plan to lighten the resulting debt load.

After drawn-out talks with Brussels over the number of take-off and landing slots at Paris-Orly airport to be given up by Air France in return for renewed aid, France's finance minister said on Sunday a compromise agreement had been reached.

France and the Netherlands each own close to 14% of Air France-KLM, and the Dutch state has held separate EU talks over converting its 1 billion-euro loan to KLM into hybrid debt, in return for slot concessions at Amsterdam-Schiphol airport.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

This story has been published from a wire agency feed without modifications to the text.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 05 Apr 2021, 09:13 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie