Lufthansa says is seeking 9 billion euro bailoutLufthansa says is seeking 9 billion euro bailout
FILE PHOTO: Planes of German carrier Lufthansa are parked on a closed runway in Frankfurt

FRANKFURT (Reuters) – Lufthansa on Thursday said it is negotiating a 9 billion euro ($9.71 billion) “stabilisation package” with Germany’s Federal Economic Stabilization Fund, confirming an earlier Reuters report.

The bailout includes a non-voting capital component, known as a so-called silent participation, a secured loan, and a capital increase which may leave the German government with a shareholding of up to 25% plus one share, the company said.

Various alternatives of a capital increase are being discussed, including an increase at the nominal value of the share, if necessary after a capital cut, Lufthansa added.

Last month Reuters reported that the airline group was seeking a 9 billion euro rescue package after travel bans grounded 700 of its aircraft, leading to a 99% drop in passenger numbers.

($1 = 0.9270 euros)

(Reporting by Edward Taylor; Editing by Arno Schuetze and Madeline Chambers)