Government forks up nearly HK$30b for Cathay Pacific, while carrier burns up HK$3b a monthThe Hong Kong government is taking a 6.08 percent interest in Cathay Pacific Airways, committing HK$29.25 billion to the airline. Cathay Pacific believes that a recapitalization is needed to ensure it has sufficient liquidity to weather the current crisis, Swire Pacific said. Swire Pacific will subscribe to HK$5.3 billion of Cathay Pacific shares under the rights issue at HK$4.68 per share, the conglomerate said. There will be seven Cathay Pacific rights shares for every 11 existing Cathay Pacific shares. The Cathay Pacific Group includes Cathay Pacific and Cathay Dragon airlines, Air Hong Kong express air cargo services in Asia, as well as the budget carier HK Express operating flights in Asia.

Source: The Standard June 09, 2020 06:00 UTC