KLM announces that it has secured funding for a overall quantity of EUR three.4 billion.
COVID-19 has prompted aviation to practically arrive to a standstill worldwide in current months. The pandemic has an unparalleled affect on KLM Groups functions. In order to cope with this tough period and to safe the foreseeable future of the company, KLM has now taken a massive number of measures to preserve liquidity soon after the outbreak. However, KLM requirements extra funding in the coming period. This has been the issue of intensive discussions with the Dutch condition and banking companies in current months.
Owing to COVID-19 KLM is now in an unparalleled crisis. The funding deal is necessary to safe the extensive and tough road of recovery in the coming period. This is a quite vital phase and I categorical my gratitude on behalf of all KLM colleagues to the Dutch condition and the banking companies for their self-assurance in our organisation and our foreseeable future. With the funding deal, KLM can proceed to fulfil its vital social part in economic recovery and sustainability. In the coming period, we will be working on the restoration of the route network and, on the other hand, on the advancement of the restructuring approach and the considerably-achieving ailments that have been imposed on the deal. KLM CEO Pieter Elbers
The funding makes sure that KLM can proceed its functions and that the companys posture is strengthened towards the foreseeable future. The ailments imposed by the Dutch Point out on the funding deal relate to the total KLM Group and include things like conditions of employment of all KLM Group employees, the variable remuneration of management and leading management, restructuring, dividend, governance, network excellent, sustainability and liveability.
Immediately after careful discussions with each the Dutch condition and banking companies, KLM has agreed on the construction of a funding deal to assure liquidity. The funding deal and the ailments beneath which this deal is offered by the Dutch condition are issue to parliamentary approval in the Netherlands. The funding deal must also be authorised by the European Fee beneath the Temporary Framework for Point out help measures released in the context of COVID-19.
The moment this approval has been obtained, KLM will consult with trade unions to do the job out and element with each other the ailments that the government imposes on the employment ailments of KLM employees.
The funding deal is composed of:
- A 90% Point out certain revolving credit facility of EUR two.4 billion with a maturity of five yrs. The facility is granted by eleven banking companies, of which three Dutch banking companies and eight foreign banking companies.
- A immediate Point out personal loan of EUR 1 billion with a maturity of five.five yrs. The personal loan, offered by the Dutch Point out, will be subordinated to the revolving credit facility.
Following the completion of the parliamentary process, the initial EUR 665 million drawing beneath the