State entry possible: TUI receives additional billion from the state

The world's largest travel group TUI is to get to the Bridging of the financial collapse in the Corona-crisis state aid. Among other things, an already existin

State entry possible: TUI receives additional billion from the state

The world's largest travel group TUI is to get to the Bridging of the financial collapse in the Corona-crisis state aid. Among other things, an already existing loan from the development Bank KfW will be increased to 1.05 billion euros, as the company announced on Wednesday in Hanover. TUI had previously received a first aid loan of 1.8 billion euros awarded.

a Further 150 million euros will flow via the construction of a convertible bond, the wants to spend the company to the economic stabilization Fund of the Federation (WSF). This could contribute, in the case of a conversion into shares with up to nine per cent of TUI. The issue of the bond is the agreed framework for the further assistance, it said. So TUI is the precursor to a state entry.

The tourism industry is one of the most difficult of the pandemic-hit sectors. TUI needs the money in order to secure further financing after approximately three months of business failure between mid-March and mid-June. The delayed summer season has only been running since June. TUI is driving a hard austerity with job cuts and lower investments, but only in the medium term a recovery.

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"The stabilization package over 1.2 billion Euro strengthens the Position of the group, by providing sufficient liquidity in a volatile market environment," said Hanover. "Thus, both the tourist seasonality in the Winter of 2020/21, as well as other longer-term travel restrictions and impairments caused by Covid-covered 19."

at the beginning of April was followed by a consortium of banks the way for the first government safe great credit to the damping of the pandemic-free. TUI added to an existing loan program, however, remained in search of Ways to increase the financial strength. CEO Fritz Joussen had implied that the existing sums might not be sufficient, in spite of parallel savings.

Updated Date: 12 August 2020, 09:20

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