Low Turnout at Lufthansa Shareholder Meeting Could Hinder Bailout
Frankfurt (dpa) - A sizeable state bailout for Lufthansa could be scuppered if too few shareholders attend an upcoming meeting to approve the terms of the deal, the chief executive of Germany's flagship airline says in an internal document seen by dpa on Sunday.
Lufthansa is in dire need of the government's 9-billion-euro (10-billion-dollar) cash injection after its business was brought almost to a standstill, with the exception of freight, by the pandemic and resulting travel restrictions.
Shareholders are due to approve the terms of the bailout deal with the German government at an extraordinary general assembly on Thursday, June 25.
But so far, shareholders registered for the meeting have comprised less than 38 per cent of capital. If the shareholder presence represents less than 50 per cent of capital, a two-thirds majority is needed in the vote.
That majority "does not seem to be guaranteed, especially given statements made recently by important shareholders, particularly concerning the conditions attached to the capital increase," Lufthansa boss Carsten Spohr writes in a letter to employees.
Lufthansa's single largest shareholder, Heinz Hermann Thiele, has not said he would approve the deal and recently criticized the state aid.
If too few shareholders come to the meeting and Thiele does not support the deal, it is unclear what would happen to the airline.
"For the eventuality that the annual general meeting does not approve the federal government's stabilization measures, we have made extensive preparations, including to prevent a grounding [of airplanes]," Spohr wrote to staff.
Lufthansa has previously said it would have to apply for bankruptcy protection if the terms of the bailout are not approved.
"We would also use the time left before filing for insolvency to discuss options with the government," Spohr wrote.
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