Lufthansa seeking US$9.71b bailout

Lufthansa on Thursday said it is negotiating a E9b "stabilisation package" with Germany's Federal Economic Stabilization Fund. The bailout includes a non-voting capital component, known as a so-called silent participation, a secured loan, and a capital increase which may leave the German government with a shareholding of up to 25% plus one share, the company said. "The Executive Board of Deutsche Lufthansa AG is continuing negotiations with the aim of ensuring the future viability of the company for the benefit of its customers and employees," the company said in a regulatory statement. Various alternatives of a capital increase are being discussed, including an increase at the nominal value of the share, if necessary after a capital cut, Lufthansa added. As a condition of the bailout, Lufthansa may have to waive future dividend payments and provide supervisory board representation for members of Germany's stabilisation fund, the company said.<br/>