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Hong Kong government leads $5bn bailout of Cathay Pacific

Airline chairman warns alternative 'would have been collapse'

Cathay Pacific's major shareholders -- Swire Pacific, Qatar Airways and Air China -- will join the Hong Kong government in infusing capital into the city's flag carrier. (Photo by Shinya Sawai) 

HONG KONG -- The government of Hong Kong will lead a $5.02 billion recapitalization of Cathay Pacific Airways under a plan unveiled on Tuesday to tide the city's ailing flagship carrier through the impact of the coronavirus pandemic.

The airline said the government aid package will consist of 19.5 billion Hong Kong dollars ($2.52 billion) from the issuance of preferred shares and HK$7.8 billion in bridge loans. Existing major shareholders Swire Pacific, Air China and Qatar Airways will join the capital call by subscribing to a HK$11.7 billion rights issue, bringing the total package to HK$39 billion.

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