Barclays to advise ailing Swiss airline
By Lachlan Johnston (Filed: 26/06/2003)
Swiss International Air Lines yesterday called in Barclays to help restructure its debt and raise a SFr500m (ï¿½235m) capital lifeline.
Barclays Capital, the investment bank, will advise the airline on the restructure but has not taken on any debt, Swiss International said yesterday.
The restructuring plan received a boost from the Swiss government yesterday, which agreed to waive fuel tax on Swiss International's domestic flights, saving the airline about SFr6m per year.
However, the government, known as the Federal Council, has yet to decide whether to grant the airline an export-risk guarantee, seen as crucial to a refinancing. The Federal Council is one of the airline's major shareholders.
If Swiss International is unable to raise the money, analysts fear it may be heading for the bankruptcy fate of its predecessor, Swissair.
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