Adds particulars, background
Adds particulars, background
PARIS, April 2 (Reuters) – The board of Air France-KLM AIRF.PA is anticipated to fulfill on Monday to debate a state-backed refinancing plan designed to strengthen its stability sheet after a yr of coronavirus shutdowns, two sources aware of the matter stated on Friday.
The airline group, which final yr acquired 10.four billion euros ($12.2 billion) in government-backed loans, has been discussing a multi-stage recapitalisation plan to lighten the ensuing debt load, sources have stated.
However the plan, prone to embody conversion of a three billion-euro French authorities mortgage into hybrid devices, has been held up by wrangling over European Union calls for that Air France hand over Paris-Orly take-off and touchdown slots as a situation.
French Finance Minister Bruno Le Maire signalled a breakthrough in these talks earlier this week, predicting an settlement inside “a matter of days”.
Air France-KLM declined to touch upon the airline group’s deliberate board assembly, first reported by Bloomberg.
EU officers had initially demanded the same variety of slots to the 24 ceded by Germany’s Lufthansa LHAG.DE in Frankfurt and Munich in return for its government-backed capital hike, sources near the talks have stated.
That place drew protests from Air France, its unions and the federal government.
France and the Netherlands every personal near 14% of Air France-KLM, and the Dutch state has held separate EU talks over changing its 1 billion euro mortgage to KLM into hybrid debt in return for slot concessions at Amsterdam-Schiphol.
Changing the federal government debt is not going to be sufficient to proper Air France-KLM’s stability sheet, say analysts, who predict an extra dilutive capital enhance will comply with.
The group advised buyers it deliberate to lift “quasi-equity and fairness”, after its stability sheet recorded 5.42 billion euros in unfavourable shareholder fairness as of Dec. 31.
($1 = 0.8504 euros)
(Reporting by Laurence Frost; Extra reporting by Gwenaelle Barzic; Modifying by Edmund Blair and Barbara Lewis)
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