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White & Case Advises Air France-KLM on €4 Billion Recapitalization

Global law firm White & Case LLP has advised Air France-KLM on its €4 billion capital-strengthening measures, approved by the European Commission on April 5, 2021, to address the consequences of the current COVID-19 pandemic.

The recapitalization includes a capital increase for an amount up to €1 billion through a public offering with a priority subscription period for shareholders, as well as the conversion of the €3 billion French State loan concluded in May 2020 into deeply-subordinated hybrid securities, eligible as equity under IFRS accounting standards.

The French State has committed to participate in the capital increase while keeping its stake below 29.9 percent of the share capital. China Eastern Airlines has also committed to participate while keeping its stake below 10 percent of the share capital.

The settlement-delivery of the capital increase is scheduled for April 22, 2021.

These capital-strengthening measures, approved on April 5 by the Board of Directors of the Group, aim to begin the restoration of the Group's equity and further reinforce its cash position. 

Air France-KLM is a leading global air transport player. Its shares are listed on the regulated markets of Euronext Paris and Euronext Amsterdam.

White & Case previously advised Air France-KLM in January 2020 on its €750 million bond issue and tender offer.

The White & Case team in Paris which advised on the transaction was led by partners Thomas Le Vert and Séverin Robillard and included partners Max Turner and Alexandre Ippolito and associates Boris Kreiss, Tatiana Uskova, Paul-Grégoire Longrois and Sarah Kouchad.

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