Germany’s Lufthansa seeks to shore up support for rescue

Germany’s Lufthansa is warning that a 9 billion-euro ($10.2 billion) rescue package for the airline group could be in danger because of criticism from a major shareholder. It urged shareholders on Wednesday to show up to a special meeting next week.

Lufthansa has agreed to the plan, which would give a government stabilization fund a 20% stake. Existing shareholders need to approve the bailout at an extraordinary meeting on June 25.

Lufthansa said it currently expects attendance of below 50% at that meeting and, in view of statements by shareholder Heinz-Hermann Thiele raising questions over his approval, the company sees a possibility that the rescue package may fail to win the two-thirds majority that such low attendance would require.

It added: “This would mean that Deutsche Lufthansa AG would possibly have to apply for protective shield proceedings under insolvency law a few days after the Annual General Meeting if no other solution is found immediately.”

The company said it “urgently appeals” to all shareholders to exercise their voting rights. Only a simple majority is required if more than 50% of the share capital is present.