Hong Kong government to lead $5 billion rescue package for Cathay Pacific

FILE PHOTO: Cathay Pacific aircraft are seen parked on the tarmac at the airport, following the outbreak of the new coronavirus, in Hong Kong, China March 5, 2020. REUTERS/Tyrone Siu

SYDNEY (Reuters) - Cathay Pacific Airways Ltd 0293.HK announced on Tuesday a recapitalisation plan worth HK$39 billion ($5.03 billion) led by the Hong Kong government to help it weather the coronavirus pandemic.

The government will be issued HK$19.5 billion of preference shares, HK$1.95 billion of warrants and will provide a HK$7.8 billion bridging loan, Cathay said.

The pact also includes a HK$11.7 billion rights issue to existing shareholders, led by Swire Pacific Ltd 0019.HK and Air China Ltd 0753.HK601111.SS, which had halted trading on Tuesday morning alongside Cathay, pending an announcement.

Reporting by Jamie Freed; Editing by Clarence Fernandez