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TUI receives additional €1.05bn loan from German bank
TUI has secured an additional €1.05 billion loan from the German government to see it through the winter.
The loan, from the state-backed KfW bank, comes on top of a €1.8bn loan from the same lender in April.
It leaves TUI with total cash and liquidity of €2.4bn to tide it over the usually quieter winter season.
The new loan is dependent on the issuing of a convertible bond of €150m to Germany’s Economic Stabilization Fund, which was established to cushion the impact of coronavirus on German companies, and a waiver by Tui’s bondholders on its senior notes due in October next year.
Both conditions and other formal requirements need to be fulfilled by 30 September.
TUI said that the partial restart of its summer holiday programme after European countries began to lifting travel restrictions had ‘an immediate positive effect on working capital’.
The company is due to report its third-quarter financial results tomorrow.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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