Lufthansa Pays Back $1.7 Billion of Germany’s Silent Stake

Deutsche Lufthansa AG paid off a chunk of the German government’s remaining bailout package, eliminating part of its so-called silent participation support with 1.5 billion euros ($1.7 billion) of the money it raised in a rights offering last week, Bloomberg News reported. The 2.16 billion-euro equity raise is now completed and new shares issued, Lufthansa said Monday in a statement. The company plans to repay a remaining 1-billion-euro silent participation to Germany’s Economic Stabilization Fund by year-end. Chief Executive Officer Carsten Spohr is racing to free Europe’s biggest airline from government strings before Chancellor Angela Merkel leaves office. With her Christian Democrats set to lose power, Lufthansa faces a new government that may not be as accommodating. Germany saved the airline with a 9 billion-euro rescue after the coronavirus pandemic battered airlines worldwide. Read more.