PARIS, April 5 (Reuters) – The board of Air France-KLM AIRF.PA was assembly on Monday to approve new French government-backed refinancing measures designed to see the airline group by way of the COVID-19 disaster, sources near the state of affairs mentioned.
Air France-KLM is anticipated to transform a part of its Four billion euros ($4.7 billion) in direct authorities loans into hybrid devices and lift new fairness capital underneath the plans to be introduced by Tuesday morning, the sources advised Reuters.
The corporate and the French finance ministry each declined to touch upon Monday.
Air France-KLM, which final 12 months obtained a complete of 10.Four billion euros in loans backed by France and the Netherlands, has for months been discussing a multi-stage recapitalisation plan to lighten the ensuing debt load.
After drawn-out talks with Brussels over the variety of take-off and touchdown slots at Paris-Orly airport to be given up by Air France in return for renewed support, France’s finance minister mentioned on Sunday a compromise settlement had been reached.
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 airport.
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(Reporting by Laurence Frost. Modifying by Mark Potter)
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