Cathay shareholders approve rescue package

Cathay Pacific Airways shareholders – including main shareholders Swire Pacific, Air China and Qatar Airways – have approved a plan to raise HK$39 billion (US$5bn) in a government-backed rescue package that includes the sale of shares and a rights issue. Cathay will sell HK$19.5bn of preference shares with HK$1.95bn of warrants to the Hong Kong government, which will own 6.08% of the carrier through a connected entity called Aviation 2020 and have two board seats. Aviation 2020 is extending a HK$7.8 billion bridge loan. Cathay plans to raise about HK$11.7 billion through the rights issue.