Factbox: German companies seek state aid to cope with coronavirus
Reuters
Published Apr 21, 2020 15:14
(Reuters) - A number of German companies, including Adidas (DE:ADSGn) and Lufthansa (DE:LHAG), have taken out government-guaranteed loans as part of the Germany's federal government's aid package to deal with the coronavirus crisis.
Here is a list of companies that have applied for the aid package or that plan to do so:
ADIDAS (DE:ADSGn)
The sportswear maker will receive a total of 3 billion euros ($3.25 billion) from a banking consortium, 2.4 billion of which will be provided by the German state-owned lender KfW Group
TUI (DE:TUIGn)
To cope with the COVID-19 impact, the holiday operator received a 1.8-billion euro loan commitment from KfW to increase the company's existing 1.75 billion euros credit agreement. "The commitment of the KfW bridging loan is an important first step for TUI to successfully bridge the current exceptional situation," said Chief Executive Fritz Joussen.
CECONOMY (DE:CECG)
The electronics supplier decided to apply for state-backed loans after it had to close most of its stores in Europe due to the official requirements to contain the pandemic. According to a source familiar with the matter, Ceconomy seeks a credit line of about two billion euros. The holding company said its existing credit lines had been exhausted by the end of March.
PUMA (DE:PUMG)
The sportswear maker said it needed the help of KfW for a new credit line. According to sources familiar with the matter, the amount involved is in the three-digit million range and is to be used to bridge Puma's sales losses of up to 80%. However, negotiations are still ongoing.
LEONI (DE:LEOGn)
The battered German auto supplier will stay afloat with state aid of several hundred million euros. The financing should compensate for the delayed payments following halted car production as well as for ongoing costs. Leoni said on April 20 it was in advanced talks with its banks to obtain a loan, 90% of which would be guaranteed by the federal government and the state of Bavaria. The firm‘s banks, which are supposed to bear the rest of the risk, have already shown their support to the plan.
LUFTHANSA (DE:LHAG)
The airline, which has slashed its capacity by over 95%, put its staff on short time work and suspended its dividend, and said already in mid-March that it was sounding out financial aid with the federal government. According to people familiar with the matter, the ongoing talks consider the option of a state-guaranteed loan and of the government owning a stake in the company. Lufthansa Chief Executive Carsten Spohr said early in April he was optimistic that the talks would lead to positive results.
Get The App
CONDOR
Due to the extended suspension of air traffic, the leisure airline needs an additional 200 million euros from the state, say people familiar with the matter. According to those people, Condor has already been promised a cash injection in order to remain liquid during the COVID-19 crisis even after a state-run group that owns Polish national airline LOT pulled out of the deal to buy the company. In addition, the debtor-in-possession financing of 380 million euros from the state-owned KfW bank will be extended. Condor has confirmed it applied for state aid, but declined to comment on the amount or type of the financial support.
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.