Lufthansa shareholders agree on stabilization measures

©Lufthansa

The shareholders of Deutsche Lufthansa AG have voted in favor of accepting the capital measures and the participation of the Economic Stabilisation Fund (WSF) of the Federal Republic of Germany in Deutsche Lufthansa AG. The corresponding proposal received the necessary majority at the Extraordinary General Meeting.

The package provides for stabilization measures and loans of up to €9 billion. The WSF will make silent capital contributions of up to €5.7 billion to the assets of Deutsche Lufthansa AG. It will also establish a 20% stake in the share capital of Deutsche Lufthansa AG by way of a capital increase. This capital increase was approved at the Extraordinary General Meeting.

The shareholders also voted in favor of granting two conversion rights for parts of the silent capital contributions. These conversion rights are intended, on the one hand, to safeguard the Federal Government in case of a takeover of Lufthansa and, on the other hand, to secure the interest payments for the silent capital contribution. Both conversion rights can be transformed into a further five percent of the company’s share capital should these conditions be met. The package will be supplemented by a loan of up to €3 billion with the participation of KfW and private banks.

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