Hong Kong government to bail out Cathay Pacific with HK$30 billion in loans and direct stake

The Hong Kong government has taken the unprecedented step of bailing out the city’s flagship airline, Cathay Pacific, which has been hit hard by the Covid-19 pandemic. Cathay lost HK$4.5 billion (US$580 million) in the first four months of 2020. The airline’s board of directors announced on June 9, 2020, that Cathay will undergo a HK$40 billion (US$5.2 billion) capital restructuring exercise, with the Hong Kong government taking the lead in a bailout package worth nearly HK$30 billion in loans and an undisclosed stake in the company. It will be the first time Hong Kong’s government has directly injected money into a private company.