(Reuters) – A number of German companies have taken out government-guaranteed loans as part of the federal government’s aid package to deal with the coronavirus crisis.
FILE PHOTO: Thyssenkrupp’s logo is seen outside the elevator test tower in Rottweil, Germany, January 21, 2020. REUTERS/Michaela Rehle
Here is a list of companies that applied for the package or plan to do so:
Thyssenkrupp has secured about 1 billion euros ($1.09 billion) in state aid, a source close to the matter said. The KfW loan should help the conglomerate to get through until money from the sale of the elevator division comes in.
The sportswear maker, which was forced to suspend dividend payments as a condition for a government-backed loan earlier this month to get it through the crisis as it burns cash, said it would replace that loan with other financial options as soon as possible. Manager Magazin said Adidas was planning a multi-billion euro bond.
The company initially agreed to take a 2.4 billion euro ($2.59 billion) government-backed loan on April 14 after it was hit by the closure of stores due to global coronavirus lockdowns and by the postponement of the Olympic Games and Euro soccer tournament.
To cope with the COVID-19 impact, the holiday operator received a 1.8-billion euro loan commitment from KfW to increase the company’s existing 1.75 billion euro credit agreement. “The commitment of the KfW bridging loan is an important first step for TUI to successfully bridge the current exceptional situation,” said Chief Executive Fritz Joussen.
The electronics supplier has secured a government-backed loan of 1.7 billion euros ($1.85 billion) to mitigate the impact of the coronavirus on its business following forced shop closures. Ceconomy, which had put 20,000 employees on short-time work in Germany but has begun reopening stores in the country since last week, said one condition of the loan is that the company suspend dividend payments.
The sportswear maker said it needed the help of KfW for a new credit line. According to sources familiar with the matter, the amount involved is in the three-digit million range and is to be used to bridge Puma’s sales losses of up to 80%. However, negotiations are still ongoing.
The battered German auto supplier will stay afloat with state aid of several hundred million euros. The financing should compensate for the delayed payments following halted car production as well as for ongoing costs. Leoni said on April 20 it was in advanced talks with its banks to obtain a loan, 90% of which would be guaranteed by the federal government and the state of Bavaria. The firm’s banks, which are supposed to bear the rest of the risk, have already shown their support to the plan.
Lufthansa and the German government have not yet agreed on a rescue package for the airline, company and government sources told Reuters at the end of April.
The German airline, which according to a company source might seek some form of protection from creditors while talking to the Berlin government about a 9 billion euro ($9.78 billion) rescue package, is also currently in talks to get financial support from Switzerland and Austria.
Due to the extended suspension of air traffic, the leisure airline needs an additional 200 million euros from the state, say people familiar with the matter. According to those people, Condor has already been promised a cash injection in order to remain liquid during the COVID-19 crisis even after a state-run group that owns Polish national airline LOT pulled out of the deal to buy the company. In addition, the debtor-in-possession financing of 380 million euros from the state-owned KfW bank will be extended. Condor has confirmed it applied for state aid, but declined to comment on the amount or type of the financial support.
($1 = 0.9200 euros)
Compiled by Bartosz Dabrowski, Linda Pasquini and Veronica Snoj in Gdansk with contributions from Frankfurt, Duesseldorf and Munich; Editing by Tomasz Janowski and Emelia Sithole-Matarise