Linklaters is advising Cathay Pacific Airways on its HK$39 billion ($5 billion) Hong Kong government-backed recapitalisation plan, aimed at shoring up the city’s flag-carrier at a time when airlines globally have been hit by a travel slump triggered by the coronavirus pandemic.
Clifford Chance is one of the principal counsel advising across all three investment tranches, while DLA Piper is representing Air China on its participation in the proposed capital infusion.
Following the double blows of Hong Kong’s political unrest and the coronavirus outbreak, Cathay had been burning through about HK$3 billion ($387 million) a month in cash, Reuters reported.
The restructuring includes the issuance of HK$19.5 billion preference shares with detachable warrants, a proposed HK$11.7 billion rights issue, and a HK$7.8 billion bridge loan facility.
The Clifford Chance team was led by partners Amy Lo, Anthony Wang, Matt Fairclough and Virginia Lee. The DLA Piper team included partners Vivian Liu and Philip Lee.
Meanwhile, the Linklaters team was led by partners Matthew Middleditch, Nathalie Hobbs, William Liu and Alex Bidlake.
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