Linklaters advises Cathay Pacific on its HK$39bn recapitalisation

Linklaters advised Cathay Pacific on its HK$39bn recapitalisation proposal, announced on 9 June 2020. 

The transaction involved:

  • a proposed issuance of preference shares and warrants to the Hong Kong SAR (HKSAR) Government to raise approximately HK$19.5bn;
  • a proposed rights issue of ordinary shares to raise approximately HK$11.7bn; and
  • a proposed bridge loan facility of approximately HK$7.8bn to be made available by the HKSAR Government.
The recapitalisation plan was proposed in response to a series of unexpected events, including the outbreak of the global Covid-19 pandemic, that have created significant challenges for the airline industry. 

The Linklaters team was led by partners Matthew Middleditch, Nathalie Hobbs, William Liu and Alex Bidlake and counsel Iris Yeung, Taiki Ki and Christian Felton.

Linklaters partner and Head of China, William Liu commented: 

“Cathay Pacific is critical to Hong Kong’s status as a global aviation hub and international financial centre. We are proud to have played our part in supporting Cathay Pacific in this landmark transaction.”