Hong Kong Govt. to lead $ 5 b rescue package for Cathay Pacific

Thursday, 11 June 2020 00:03 - - {{hitsCtrl.values.hits}}

SYDNEY (Reuters): Cathay Pacific Airways Ltd. announced on Tuesday a recapitalisation plan worth HK$ 39 billion ($5.03 billion) led by the Hong Kong Government to help it weather the coronavirus pandemic.

The Government will be issued HK$ 19.5 billion of preference shares, HK$ 1.95 billion of warrants and will provide a HK$ 7.8 billion bridging loan, Cathay said.

The pact also includes a HK$ 11.7 billion rights issue to existing shareholders, led by Swire Pacific Ltd. and Air China Ltd., which had halted trading on Tuesday morning alongside Cathay, pending an announcement.