The government recapitalized Croatia Airlines!
At yesterday's General Assembly of Croatia Airlines, the Croatian national airline and member of the Star Alliance, a decision was made to increase the share capital, pay in cash and issue new shares as a measure of financial assistance to the Republic of Croatia in accordance with the European Commission program for current COVID-19 pandemic.
The purpose of the increase in share capital is to return the state of capital and reserves of the company to the pre-crisis level caused by the COVID-19 pandemic, ie on 31.12.2019. which is one of the applicable measures of financial assistance of the Republic of Croatia based on the document of the European Commission which defines the "Temporary framework for state aid measures to support the economy in the current COVID 19 pandemic".
The share capital of Croatia Airlines is increased from the amount of HRK 277,879,530.00, by amount of HRK 350,000,000.00, to amount of HRK 627,879,530, by issuing new 35,000,000.00 ordinary registered shares, with a nominal amount of HRK 10 each, in dematerialized form.
Each share entitles to one vote in the General Assembly of the Company, is registered and gives shareholders all rights determined by the Law and the Articles of Association of the Company from the date of entry of the share capital increase in the court register. The subscription and payment of new ordinary shares will be made by a deposit in the money of the Republic of Croatia in the amount of HRK 350,000,000.00.
The new shares are subscribed and taken over by the Republic of Croatia in the total nominal amount of HRK 350,000,000.00.
Also, Zlatko Mateša, Nataša Munitić, Zoran Barac and Mirko Tatalović were elected as members of the Supervisory Board of the company for a period of three months starting from 15 January 2021.
"Aware of the importance of the national airline for the economy of the Republic of Croatia in the summer, but also in winter months, the Government of the Republic of Croatia approved a liquidity loan of HRK 250,000,000.00 to Croatia Airlines, which gives us the extra strength necessary for the months in which we will continue to support our citizens and the economy, striving at all times to enable the transport of passengers and goods and in its own way, make the currently difficult transport connections and economic situation simpler, justifying the trust of our owner and all citizens of the Republic of Croatia", Jasmin Bajić, CEO.
The coronavirus pandemic this year has caused the biggest crisis in the history of civil aviation, and governments around the world have already made decisions on financial aid to airlines, and aid packages which includes recapitalization, state loan guarantees, shareholder loans etc. According to the International Air Transport Association (IATA), the total amount of state aid to airlines which has been approved or is in the process related to the COVID-19 crisis, reaches 173 billion USD, Croatia Airlines concludes in its statement.