Financially struggling Italian airline Alitalia has secured its future with a €500 million cash injection.
Alitalia was teetering on the brink of bankruptcy for the second time in four years until the refinancing deal was agreed on Friday (October 11).
The airline will receive €300 million in fresh capital from an issue of new shares with the Italian post office Poste Italiane pumping in €75 million in return for a 15 per cent stake. Air France KLM will remain Alitalia’s biggest shareholder with a 25 per cent stake.
Alitalia has also secured €200 million in new lines of credit from its banks.
“The entire board of directors expressed its satisfaction at the approval of the financial plan that - with a massive injection of fresh funds - provides a solid basis for the future of the company,” said the airline in a statement.
The company is due to hold a meeting of its directors and shareholders today (October 14) to approve the deal.
alitalia.com