Cathay Pacific shareholders votes on $5 billion rescue package

Record ID: 1562082

  • Title: Cathay Pacific shareholders votes on $5 billion rescue package
  • Date: 13th July 2020
  • Summary: HONG KONG, CHINA (FILE - MARCH 10, 2020) (REUTERS) VARIOUS OF CATHAY PACIFIC PLANES PARKED AT GATES AT HONG KONG INTERNATIONAL AIRPORT
  • Embargoed: 27th July 2020 09:13
  • Keywords: Air China Cathay Pacific Hong Kong Government Swire Pacific coronavirus
  • Location: HONG KONG / BEIJING, CHINA / IN AIR
  • City: HONG KONG / BEIJING, CHINA / IN AIR
  • Country: Hong Kong
  • Topics: Society/Social Issues
  • Reuters ID: LVA001CMN5JD3
  • Aspect Ratio: 16:9
  • Story Text: Cathay Pacific shareholders are voting on Monday (July 13) to accept a HK$39 billion ($5 billion) rescue package from the Hong Kong government as the aviation industry is battered by the coronavirus pandemic.
    The package includes a HK$7.8 billion bridging loan, HK$ 19.5 billion of preference shares giving it a 6% stake and HK$1.95 billion of warrants. The government will also have the right to two observers at board meetings.
    Government round the world have been helping aid airlines amid a plunge in travel demand and coronavirus-related travel restrictions. Cathay has grounded most of its planes, flying only cargo and a skeleton passenger network to major destinations such as Beijing, Los Angeles, Singapore, Sydney, Tokyo and Vancouver.
    Shareholders, including Swire which holds 45%, Air China which owns 30% and Qatar Airways with 10%, plan to participate in the rights issue. Their holdings will fall to 42%, 28% and 9.4% afterward.
  • Copyright Holder: FILE REUTERS (CAN SELL)
  • Copyright Notice: (c) Copyright Thomson Reuters 2020. Open For Restrictions - http://about.reuters.com/fulllegal.asp
  • Usage Terms/Restrictions: None
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