Hogan Lovells advises Bundesrepublik Deutschland – Finanzagentur GmbH on the stabilisation measures for Deutsche Lufthansa AG

On June 1, 2020, the Supervisory Board of Deutsche Lufthansa AG approved the conclusion of an agreement with the WSF (represented by Bundesrepublik Deutschland – Finanzagentur GmbH) on the granting of stabilization measures. According to this agreement, the WSF will grant Deutsche Lufthansa AG silent participations in the amount of approximately EUR 5.7 bn. Furthermore, the WSF will subscribe to new shares created by way of a capital increase in order to hold a 20% stake in the increased share capital of Deutsche Lufthansa AG. The subscription price is EUR 2.56 per share, so that the cash contribution amounts to approximately EUR 300 million. The WSF may also increase its stake in the share capital to 25% plus one share in the event of a takeover of the company. In addition, in the event of non-payment of remuneration by the company, a further portion of the silent participation can be converted into a further shareholding of 5% of the share capital at the earliest from 2024 and 2026 respectively. This conversion option, however, only applies to the extent that the WSF has not previously increased its shareholding in connection with the above-mentioned takeover scenario. 

Hogan Lovells team for Bundesrepublik Deutschland – Finanzagentur GmbH

Frankfurt

Dr. Tim Oliver Brandi (Partner), Prof. Dr. Michael Schlitt (Partner), Dr. Susanne Ries (Of Counsel), Mark Devlin (Counsel), Christian Schröder, Dr. Timo Lockemann, Lena Jahnke (Associates), Eva-Christina Sommer, Simona Gradišek (Business Lawyers, all Corporate Capital Markets);

Dr. Julian Fischer (Partner), Lennart Lautenschlager (Counsel, both International Debt Capital Markets);

Dr. Richard Reimer (Partner), Sarah Wrage (Senior Associate, both Banking and Supervisory);

Dusseldorf

Dr. Heiko Gemmel (Partner), Anne-Svenja de Kiff (Senior Associate, both Tax);

Dr. Martin Sura (Partner, Antitrust);

Hamburg 

Dr. Marc Schweda (Partner), Dr. Jan-Christoph Rudowicz (Senior Associate), Nikita Ivlev, Dr. Stefan Küster (Associates, all Antitrust);

Munich

Dr. Heiko Tschauner (Partner), Christine Borries (Counsel, both Restructuring and Insolvency);

Brussels

Falk Schöning (Partner), Philipp Heuser (Senior Associate), Stefan Kirwitzke (Associate, all Antitrust and Transportation Regulatory);

Washington D.C.

Robert F. Baldwin (Counsel, Antitrust);

Northern Virginia

Michele S. Harrington (Partner, Antitrust).