Factbox: German companies seek state aid to cope with coronavirus

Leoni AG

30/04/2020 14:04

(Adds Thyssenkrupp, updates Adidas, Lufthansa, Ceconomy)
    April 30 (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.
    Here is a list of companies that applied for the package or
plan to do so:
    
    THYSSENKRUPP  TKAG.DE 
    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.  urn:newsml:reuters.com:*:nL8N2CI4ZE
    
    ADIDAS  ADSGn.DE 
    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.  urn:newsml:reuters.com:*:nL5N2CB3W5
    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.
    
    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 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.  urn:newsml:reuters.com:*:nFWN2BK1CI
    
    CECONOMY  CECG.DE  
    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.  urn:newsml:reuters.com:*:nL8N2CH7AL   
    
    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  
    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.  urn:newsml:reuters.com:*:nL5N2CF4YC 
    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.  urn:newsml:reuters.com:*:nL8N2CH4S5

    
    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 = 0.9200 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)
 ((bartosz.dabrowski@thomsonreuters.com;veronica.snoj@thomsonreu
ters.com))