Aviation Group Air France-KLM Issues New Shares

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Aviation group Air France-KLM will issue new shares. That writes Reuters news agency based on sources around the French-Dutch company.

 

Air France-KLM announced on Tuesday that it wants to convert part of its government loans into loans that can be exchanged for shares. Also, the company will also raise money with new shares.

The announcement is the result of an agreement between the French state and Brussels on Air France-KLM’s refinancing.

The French Finance Minister announced on Sunday that an agreement had been reached on this without giving details. The Netherlands is still in talks with the European Commission about further state aid for Air France-KLM.

The aviation sector has been hit hard by the corona crisis. Previously, France and the Netherlands, which each own about 14 percent of the company’s shares, already jumped by 10.4 billion euros.

Part of this, EUR 4 billion, was a direct loan and France and the Netherlands guaranteed the rest of the amount for loans from banks.

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