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Cathay Pacific: Bailed out ...

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  1. #21

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    https://www.scmp.com/news/hong-kong/...ong-kong-stock

  2. #22

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    Quote Originally Posted by Shiojiri Hiro:
    Aready posted.

  3. #23

  4. #24

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    Govt bailout... 30B loan...?!


  5. #25

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    https://www.scmp.com/news/hong-kong/...ong-kong-stock
    The [government] will not have voting rights on the board but would have a say on major decisions that affect the public’s interests. This could range from not allowing massive lay-offs at the airline, which employs 33,000 staff, to ensuring company values would be in line with the city administration’s own emphasis on the “one country, two systems” principle of governance.
    Sources told the Post Cathay had tried to secure loans from the private equity market but could not get bidders, given the political sensitivities surrounding its ownership.
    It is already too tainted by political corruption to get private investment...

    (Note: headline is updated on the page, but apparently not on the embed, to read "Hong Kong government to bail out Cathay Pacific with HK$30 billion in loan and direct stake")

  6. #26

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    And there you go ..

    Cathay’s restructuring package marks the first time the Hong Kong government has directly injected money into a private company.

    Cathay Pacific will undergo a HK$40 billion (US$5.2 billion) capital restructuring exercise as the Hong Kong government takes the lead in a bailout package worth nearly HK$30 billion in loans and an undisclosed stake, lending its full backing for the city to remain the region’s aviation hub.
    Emerging as a “white knight”, the government will offer a loan to be paid back in the future and, more controversially, it will take a stake in the airline without seeking full boardroom status. Instead, it will have the “two observers” on the board, industry sources revealed.

    https://www.scmp.com/news/hong-kong/...ong-kong-stock

  7. #27

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    and Swire laughs all the way to the bank

    ::takes a sip of Coke Zero::


  8. #28

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    The Recapitalisation Proposal involves:

    (1) the Preference Shares and Warrants Issue, being a proposed issuance by Cathay Pacific to Aviation 2020 Limited of: (a) the Preference Shares for an aggregate subscription price of HK$19.5 billion; and (b) Warrants to subscribe for Shares with an aggregate exercise price of approximately HK$1.95 billion (subject to adjustment);

    (2) the Rights Issue, being a proposed rights issue of 2,503,355,631 Rights Shares on the basis of seven Rights Shares for every 11 existing Shares held on the Rights Issue
    Record Date at a Rights Subscription Price of HK$4.68 to raise aggregate proceeds of approximately HK$11.7 billion; and

    (3) the Bridge Loan, being a committed bridge loan facility to be extended by Aviation 2020 Limited to Cathay Pacific in an amount of HK$7.8 billion.


    HKEX Doc ...

    Download: http://iis.aastocks.com/20200609/9312830-0.PDF?noembed

    http://iis.aastocks.com/20200609/9312830-0.PDF

  9. #29

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    And something like this ...

    two deeds of undertaking by Swire Pacific in favour of Aviation 2020 Limited pursuant to which Swire Pacific has undertaken, among other things, to remain a controlling shareholder of Cathay Pacific from 9 June 2020 and for so long as Aviation 2020 Limited remains the holder of any Preference Shares or any amount of the Bridge Loan remains outstanding.

  10. #30

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    Resumption tomorrow:

    At the request of Cathay Pacific, trading in the Shares on the Stock Exchange was halted with effect from 9:00 a.m. on 9 June 2020 pending the release of this announcement. An application will be made by Cathay Pacific to the Stock Exchange for resumption of trading in the Shares on the Stock Exchange with effect from 9:00 a.m. on 10 June 2020.