Cathay Pacific announces USD5bn recapitalisation plan

9 June, 2020

Cathay Pacific announced (09-Jun-2020) a HKD39 billion (USD5 billion) recapitalisation plan designed to provide the carrier with sufficient funds to withstand the industrywide downturn and a stable financial platform from which it will be able to conduct the wholesale review of operations required to transform its business to reflect the new global travel market dynamics. The recapitalisation plan comprises three tranches:

  • Tranche A: Cathay Pacific will issue HKD19.5 billion (USD2.5 billion) in preference shares with detachable warrants to the Hong Kong SAR (HKSAR) Government after requisite shareholders' approval has been obtained;
  • Tranche B: Cathay Pacific will launch a HKD11.7 billion (USD1.5 billion) rights issue of shares to existing shareholders after requisite shareholders' approval has been obtained;
  • Tranche C: The HKSAR Government will provide HKD7.8 billion (USD1 billion) bridge loan facility to Cathay Pacific, available for drawdown immediately. [more - original PR]