Lufthansa shareholders vote to accept resources of German Stabilization Fund

Deutsche Lufthansa AG has announced 98% of its shareholders voted in favor of accepting the capital measures and the participation of the Economic Stabilisation Fund (WSF) of the Federal Republic of Germany, the company said.

The package provides for stabilization measures and loans of up to EUR 9 billion. The WSF will make silent capital contributions of up to EUR 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.

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 euros with the participation of KfW and private banks.

As a result of the resolution, the company´s liquidity is secured on a sustained basis. The companies of Lufthansa Group are working to get their operations up and running again. The airlines´ flight schedules will therefore be consistently expanded in the coming weeks. The flight schedule for the next few weeks will be published at the beginning of next week. The plan is to include 90 percent of all originally planned short-haul destinations and 70 percent of all long-haul destinations in the flight schedule again by September.