German companies seek state aid to cope with coronavirus
(Adds Kion, Douglas, updates Lufthansa, Deutsche Bahn)
June 2 (Reuters) - A number of German companies have taken
out state-backed loans as part of the federal government's aid
package to deal with the coronavirus crisis.
Here is a list of companies that have applied for the
package or plan to do so:
The supervisory board of flagship carrier Lufthansa approved
on Monday a 9 billion euro ($10 billion) government bailout that
will force the German airline to give some of its prized landing
slots to rivals.
Under the plans, the German government will take a 20% stake
in the airline as well as two seats on its supervisory board.
The German forklift truck and robotics maker said on May 22
it had agreed on an additional credit facility of up to 1.0
billion euros with its core group of lenders and Germany's
development bank KfW. Under the agreement, KfW would
grant 80% of the total while the company's core banks the
The battered German auto supplier will stay afloat with
state aid of several hundred million euros.
Leoni said in April it was in advanced talks with its banks
to obtain a loan, 90% of which would be guaranteed by the
federal government and the state of Bavaria.
The firm's banks, which are supposed to bear the rest of the
risk, have already shown their support for the plan.
Indebted German mineral miner K+S slashed its dividend
proposal to 4 euro cents per share from a previously proposed 15
cents per share to become eligible for state aid.
The company said at the beginning of May it was eyeing loans
backed by KfW, but declined to comment on whether it had already
applied for a loan or how big it could be.
Thyssenkrupp has secured about 1 billion euros in state aid,
sources close to the matter said at the end of April.
The KfW loan should help the conglomerate to get through
until money from the sale of its elevator division arrives.
The sportswear maker, which in April proposed suspending its
dividend due to the pandemic, said earlier this month it had
secured a new revolving credit facility of 900 million euros,
including 625 million from KfW.
The sportswear maker, which was forced to suspend dividend
payments as a condition of a government-backed loan in
mid-April, said it would replace that loan with other financial
options as soon as possible.
Manager Magazin later in April said Adidas was planning a
multi-billion euro bond.
The company initially agreed to take a 2.4 billion euro
government-backed loan to cope with the closure of stores and
the postponement of the Olympic Games and Euro soccer
To cope with the impact of COVID-19, the holiday operator
received a 1.8 billion euro loan commitment from KfW to
supplement its existing 1.75 billion euro credit agreement.
"The commitment of the KfW bridging loan is an important
first step for TUI to successfully bridge the current
exceptional situation," said Chief Executive Fritz Joussen at
the end of March.
The electronics supplier secured a government-backed loan of
1.7 billion euros to mitigate the impact of the coronavirus on
its business following forced shop closures, the company said at
the end of April.
Ceconomy, which had put 20,000 employees on short-time work
in Germany but has been reopening stores in the country since
mid-April, said one condition of the loan is that the company
suspend dividend payments.
The German car rental company said earlier in May it had
signed a syndicated loan agreement with a bank consortium
including state-owned KfW for a revolving credit line of up to
1.5 billion euros, with a term of up to two years.
Among other conditions, Sixt has agreed to waive dividend
payments during the term of the loan, except for the annual
minimum dividend of 0.05 euros paid for preference shares.
The German perfume retailer said at the end of May it had
been in talks with KfW about a loan, but discussions were put on
hold as it could not reach an agreement on conditions. The
company now hopes to be able to make it through the pandemic
without state aid, despite expecting an ongoing hit to sales.
Car parts maker Benteler is considering applying for
state-backed loans in Germany, three sources familiar with the
talks said last week, adding though its tax status could ruin
The company, which makes chassis components, steel tubes and
exhaust systems, moved from Germany to Austria in 2010 to lower
its tax bill, but still employs 9,000 people out of a global
workforce of 27,000 in Germany.
Late in May, Germany's government said it was planning to
inject at least 5.5 billion euros into state-owned rail operator
Deutsche Bahn, which has been hit by the collapse in travel.
Employees will contribute a further 2 billion euros up until
2024 and a debt cap will be lifted, the government said.
Lawmakers from German Chancellor Angela Merkel's
conservative party and Finance Minister Olaf Scholz's Social
Democrats have agreed to lift the debt ceiling by 5 billion
euros to 30 billion euros this year, according to the draft
parliamentary resolution obtained by Reuters.
Germany's government and the federal state of Hesse have
agreed to give charter airline Condor loans worth 550 million
euros, the economy minister said at the end of April, after the
owner of Poland's LOT pulled out of a deal to buy the group.
Condor said in a separate statement it would receive a 294
million euro loan as coronavirus aid and an additional 256
million euros to completely refinance a bridging loan it
received after the collapse of parent company Thomas Cook.
($1 = 0.8951 euros)
(Compiled by Bartosz Dabrowski, Linda Pasquini and Veronica
Snoj in Gdansk with contributions from Frankfurt, Duesseldorf
and Munich; Editing by Tomasz Janowski/Emelia
Sithole-Matarise/Jan Harvey/Barbara Lewis)
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