Factbox: German companies seek state aid to cope with coronavirus

Leoni AG

21/04/2020 15:58

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    April 21 (Reuters) - A number of German companies, including
Adidas  ADSGn.DE  and Lufthansa  LHAG.DE , have taken out
government-guaranteed loans as part of the Germany's federal
government's aid package to deal with the coronavirus crisis.
    Here is a list of companies that have applied for the aid
package or that plan to do so:
    
    ADIDAS  ADSGn.DE 
    The sportswear maker will receive a total of 3 billion euros
($3.25 billion) from a banking consortium, 2.4 billion of which
will be provided by the German state-owned lender KfW Group
 KFW.UL . Adidas has lost more than 60% of its revenue due to
worldwide stores shutdown. Already in the beginning of the year,
Adidas lost out on one billion euros of revenues due to store
closures in China. The loan runs until mid-2021. Adidas is not
allowed to pay dividends for as long as the share buyback is
stopped. The board will waive all bonuses in 2020.
    
    TUI  TUIGn.DE 
    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 euros 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.  urn:newsml:reuters.com:*:nFWN2BK1CI
    
    CECONOMY  CECG.DE  
    The electronics supplier decided to apply for state-backed
loans after it had to close most of its stores in Europe due to
the official requirements to contain the pandemic. According to
a source familiar with the matter, Ceconomy seeks a credit line
of about two billion euros. The holding company said its
existing credit lines had been exhausted by the end of March.
 urn:newsml:reuters.com:*:nL8N2C55CU   
    
    PUMA  PUMG.DE  
    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. 
    
    LEONI  LEOGn.DE 
    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  LHAG.DE  
    The airline, which has slashed its capacity by over 95%, put
its staff on short time work and suspended its dividend, and
said already in mid-March that it was sounding out financial aid
with the federal government. According to people familiar with
the matter, the ongoing talks consider the option of a
state-guaranteed loan and of the government owning a stake in
the company. Lufthansa Chief Executive Carsten Spohr said early
in April he was optimistic that the talks would lead to positive
results.  urn:newsml:reuters.com:*:nL5N2BW11L
    
    CONDOR
    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 = 0.9230 euros)

 (Compiled by Bartosz Dabrowski, Linda Pasquini and Veronica
Snoj in Gdansk with contributions from Frankfurt, Duesseldorf
and Munich
Editing by Tomasz Janowski)
 ((bartosz.dabrowski@thomsonreuters.com;veronica.snoj@thomsonreu
ters.com))