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Air France-KLM plans board assembly on refinancing, sources say By Reuters 

© Reuters. An Air France airplane lands on the Charles-de-Gaulle airport in Roissy

PARIS (Reuters) – The board of Air France-KLM is predicted to fulfill on Monday to debate a state-backed refinancing plan designed to strengthen its stability sheet after a yr of coronavirus shutdowns, two sources conversant in the matter mentioned on Friday.

The airline group, which final yr acquired 10.4 billion euros ($12.2 billion) in government-backed loans, has been discussing a multi-stage recapitalisation plan to lighten the ensuing debt load, sources have mentioned.

However the plan, more likely to embody conversion of a 3 billion-euro French authorities mortgage into hybrid devices, has been held up by wrangling over European Union calls for that Air France quit Paris-Orly take-off and touchdown slots as a situation.

French Finance Minister Bruno Le Maire signalled a breakthrough in these talks earlier this week, predicting an settlement inside “a matter of days”.

Air France-KLM declined to touch upon the airline group’s deliberate board assembly, first reported by Bloomberg.

EU officers had initially demanded an identical variety of slots to the 24 ceded by Germany’s Lufthansa in Frankfurt and Munich in return for its government-backed capital hike, sources near the talks have mentioned.

That place drew protests from Air France, its unions and the federal government.

France and the Netherlands every personal near 14% of Air France-KLM, and the Dutch state has held separate EU talks over changing its 1 billion euro mortgage to KLM into hybrid debt in return for slot concessions at Amsterdam-Schiphol.

Changing the federal government debt won’t be sufficient to proper Air France-KLM’s stability sheet, say analysts, who predict an extra dilutive capital enhance will observe.

The group informed traders it deliberate to boost “quasi-equity and fairness”, after its stability sheet recorded 5.42 billion euros in unfavorable shareholder fairness as of Dec. 31.

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