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Lufthansa Shareholders Approve €9 Bln Bailout Plan

The shareholders of Deutsche Lufthansa AG have approved a 9 billion euros rescue plan at a general meeting on Thursday.

The shareholders of voted in favor of Lufthansa accepting the capital measures and the participation of the Economic Stabilisation Fund of German state.

The package provides for stabilization measures and loans of up to 9 billion euros. The WSF will make silent capital contributions of up to 5.7 billion euros to the assets of Lufthansa. It will also establish a 20 percent stake in the share capital of Lufthansa by way of a capital increase.

The shareholders also voted in favor of granting two conversion rights for parts of the silent capital contributions. These conversion rights are intended, on the one hand, to safeguard the Federal Government in case of a takeover of Lufthansa and, on the other hand, to secure the interest payments for the silent capital contribution.

The package will be supplemented by a loan of up to 3 billion euros with the participation of KfW and private banks.

Carsten Spohr, Chairman of the Executive Board of Deutsche Lufthansa AG says: "The decision of our shareholders provides Lufthansa with a perspective for a successful future. On behalf of our 138,000 employees, I would like to thank the German federal government and the governments of our other home countries for their willingness to stabilize us. We at Lufthansa are aware of our responsibility to pay back the up to 9 billion euros to the taxpayers as quickly as possible."

Earlier, the company received approval from European Union to receive recapitalization from the German government. The European Commission said in a statement that Germany's plan to take a 20% stake in the airline is in line with strict state-aid rules.

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