German airline Lufthansa on Wednesday said it would have to apply for bankruptcy protection if the terms of a bailout deal with the German Government fail at an extraordinary general assembly, slated for June 25.
According to the Frankfurt Headquarters of the company, Lufthansa will have to apply for bankruptcy protection proceedings shortly after the annual general meeting if a solution is not found immediately.
The company was reacting to the statement by Heinz Hermann Thiele, Lufthansa’s single largest shareholder, in which he doubted the bailout, particularly about the involvement of the German Government in the business.
Lufthansa said with the way things were, it was possible that the stabilisation package could fail to achieve the two-thirds majority of votes cast that would be required to sign off the bailout.
The carrier is in the late stages of securing a bailout deal amounting to 9 billion euros (or 10.1 billion dollars) in state aid, which the German Government cleared with EU regulators.