Hong Kong Throws Lifeline to Cathay Pacific | Aviation International News

Hong Kong Throws Lifeline to Cathay Pacific

Cathay Pacific Group will issue ownership warrants to the Hong Kong government as part of a $5 billion recapitalization effort.

A Cathay Pacific Airbus A350-1000 approaches Hong Kong Chek Lap Kok Airport. (Photo: Flickr: Creative Commons (BY-SA) by Melvinnnnnnnnnnn (FN2187))

By Gregory Polek • Senior Editor

June 9, 2020

Hong Kong has agreed to lead a HK$39 billion ($5 billion) recapitalization effort for flag carrier Cathay Pacific, marking the latest case of a government taking an equity stake in a private airline to help keep it afloat during the Covid-19 pandemic. In a Tuesday filing with the Hong Kong Stock Exchange, Cathay said the government would provide a HK$27.3 billion package consisting of a HK$7.8 billion bridge loan and HK$19.5 billion in preferred share repurchases. The HK$11.7 billion balance would come from the issuance of new stock.

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