Wednesday, 19 January 2022

Cathay Pacific proposes $5 billion bailout

pixabay/WikimediaImages

HONG KONG: Financially battered Hong Kong airline Cathay Pacific Airways has proposed the government help fund a 39 billion Hong Kong dollar ($5 billion) recapitalization plan to help it survive the coronavirus pandemic.

Cathay Pacific said in a stock exchange filing on Tuesday that the plan calls for it to issue shares to raise more than 33 billion Hong Kong dollars (over $4.3 billion).

Of that total, about 20 billion Hong Kong dollars ($2.6 billion) would be issued to a new, government-controlled group to be called Aviation 2020.

The airline also would receive a 7.8 billion Hong Kong dollar ($1 billion) loan from Aviation 2020.

Cathay Pacific, one of Asia’s biggest airlines, proposed the bailout as it struggles to survive the near collapse of regional travel due to the coronavirus pandemic.

“Cathay Pacific has explored available options and believes that a recapitalization is required to ensure it has sufficient liquidity to weather this current crisis,” it said in the filing.

Check Also

Porsche to set up joint venture with Customcells

© Reuters. FILE PHOTO: A Porsche Taycan electrical automobile (EV) is seen displayed throughout a ...

Leave a Reply