'We simply don't have any money.' Lufthansa urges shareholders to back government bailout - CNN
Billionaire businessman Heinz Hermann Thiele had been threatening to block the deal, which was agreed with the government late last month. But with just hours to go before a vote of shareholders, he relented, telling German newspaper Frankfurter Allgemeine Wednesday that he would vote for the resolution. Shares in the company were trading 12% higher in Frankfurt on Thursday.
Lufthansa clinches $10 billion bailout from German government
At the virtual meeting of shareholders, Lufthansa CEO Carsten Spohr appealed for support. “We are asking for nothing less than your approval to save Deutsche Lufthansa,” he said.
The uncertainty over Thiele’s vote had already forced Lufthansa (DLAKY) to take some extraordinary steps. It brought forward the disbursement of staff salaries by three days this month to “guarantee payment” in the context of the “uncertainties” surrounding the bailout, Spohr wrote in a letter to employees seen by CNN Business.
If shareholders reject the plan the airline has made “extensive preparations” to avoid its planes being grounded and would “discuss options” with the government before filing for insolvency, Spohr said in the letter.
Heinz Hermann Thiele, billionaire and majority owner of Knorr-Bremse AG.
But time is running out. Lufthansa lost €1.2 billion ($1.3 billion) in the first quarter and said last