The financing package consists of:
- A 90% State guaranteed revolving credit facility of EUR2.4 billion with a maturity of five years. The facility is granted by 11 banks, comprising three Dutch banks and eight foreign banks.
- A direct State loan of EUR1bn with a maturity of 5.5 years, subordinated to the revolving credit facility.
The financing package and the conditions under which it is provided by the Dutch state have received parliamentary approval in the Netherlands. In addition, the financing package is subject to approval by the European Commission under the Temporary Framework for State aid measures introduced in the context of Covid-19.
Once this approval has been obtained, KLM will draw up a restructuring plan that meets the conditions imposed by the Dutch state and determines the path for post-Covid-19 recovery. As part of this process, KLM will consult with the trade unions to work out and detail together the employment conditions of KLM employees.
Niels de Ru, partner in Allen & Overy’s Amsterdam office, commented: “This was a highly complex transaction because of the many stakeholders and interests involved. Time pressure, public visibility and the seriousness of the Covid-19 crisis added to the challenge. I’m proud that we have been able to support KLM at this critical juncture; they still have an intense period ahead of them and we will continue to provide support when and where possible.”
The Allen & Overy team was led by partner Niels de Ru (Banking). Further specialist advice was provided by partners Andrew Thomas (Global Banking), Kees Schillemans (Competition), Tim Stevens (Corporate) and Suzanne Sikkink (Employment), and Arnold Croiset van Uchelen (Litigation) as well as associates Rob de Kort, Hector Craft and Géza Orbán, and paralegal Leon Zebeda (Banking).
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