The European Commission on Monday approved Germany’s plans to grant insolvent Air Berlin a €150 million loan, keeping the country’s second largest airline flying through the summer while the state negotiates the sale of the company’s assets.
The loan installments will be paid only after the regulator is shown each week that “all existing liquidity has been used”. The loan will need to be fully repaid within six months. If the money cannot be repaid, Germany will have to submit a winding-down plan to the EU competition officials for approval.
Air Berlin had filed for bankruptcy protection after its main shareholder, Gulf carrier Etihad, had withdrawn funding for Air Berlin.