The German government's plan to rescue Lufthansa with a $10 billion bailout hangs in the balance, and Europe's leading global airline may be left scrambling to avoid insolvency.
Billionaire businessman Heinz Hermann Thiele had been threatening to block the deal, which was agreed with the government late last month, at a virtual meeting on Thursday. But with just hours to go before the vote, Thiele relented, telling German newspaper Frankfurter Allgemeine that he will vote for the resolution.Lufthansa clinches $10 billion bailout from German governmentThe uncertainty had already forced Lufthansa to take some extraordinary steps.
2 billion in the first quarter and said last month that it was burning through €1 million in cash every hour. It had €4 billion in cash on May 5."The rational decision under the circumstances would be for the shareholders to accept the deal that's on the table," said Per-Ola Hellgren, an investment analyst and director at German bank Landesbank Baden-Württemberg.
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