Cathay Pacific shareholders back bailout plan

Monday, 13. July 2020 14:35

Cathay Pacific shareholders approved a bailout package from the Hong Kong government worth HK$39 billion ($5 billion) on Monday. A total of 99% of the shareholders were in favor of the deal, South China Morning Post reported.

The company will now examine its fleet, network and structure before coming up with a final overhaul plan, Chairman Patrick Healy said. Ahead of the vote, Healy noted: "The first priority was to get the recapitalization done and it’s great to get this far and we hope to get shareholder support and then we’ll move onto the deliberations of the restructuring."

The airline said that it would pay back about half of the $5 billion to the Hong Kong government in three to five years as it faces a severe drop in business due to the coronavirus pandemic. Cathay Pacific and Cathay Dragon passenger figures dropped by 99.4% in May year-on-year, according to company data.

Related Links: Cathay Pacific Airways Ltd.
Author:
Breaking the News / VP