Air France-KLM nears bailout with improved guarantees: Sources

Air France-KLM is moving towards a E10b (US$10.b) govt-backed rescue deal, sources said, after France agreed to higher guarantees on loans designed to tide the airline group through the coronavirus crisis. Paris is ready to vouch for 90% or more of the bank loans to Air France, rather than the 70% initially offered, people with knowledge of the matter told Reuters. The increased guarantees were first reported by La Tribune Wednesday. Air France-KLM representatives and the French finance ministry declined to comment. Banks had been holding out for an improvement on the 70% French guarantees offered for about E4b in loans to Air France, to be accompanied by close to E2b in Dutch-backed lending to KLM, Reuters reported April 3. <br/>