Lufthansa gears up for bailout showdown with investor

Lufthansa will seek to avoid a grounding and insolvency, CE Carsten Spohr said Sunday, before a showdown between the airline's biggest shareholder and the German government over the terms of a E9b bailout. Lufthansa has been hard hit by what is expected to be a protracted travel slump because of the COVID-19 pandemic, forcing it to seek a bailout. Billionaire shareholder Heinz Hermann Thiele will meet the economics minister on Monday to discuss his objections to the state-backed bailout, a source close to the matter said. As an alternative to the government taking a direct stake in Lufthansa, Thiele has proposed an indirect participation through state-owned German development bank KfW. In a letter to employees, Spohr said the airline was in intense talks with the government and large shareholders which had "the clear goal of finding a satisfactory solution for our company and all participants before Thursday," when an extraordinary shareholder meeting will be held. Expressing his desire to avoid a grounding or insolvency, he said: "I am sure this is an objective which unites all parties."<br/>