Dutch government suspends rescue loan to KLM

Nov 03 in National News

KLM’s proposed restructuring plan has been rejected by the Dutch government, over the failure to secure crucial union commitments, and the airline will not be permitted to make further draws on the loans put forward to support the carrier.

The Dutch finance ministry has informed parliament that the first draw on the loan – amounting to €277 million – was made on 26 August, with a €665 million draw on a revolving credit facility on the same day.

But the ministry says the government “will not make a second tranche available” until KLM’s restructuring plan meets the “satisfaction of the state”.

By David Kaminski-Morrow

To read the rest of the article please visit: https://www.flightglobal.com/airlines/dutch-government-suspends-rescue-loan-to-klm/140910.article