Hong Kong extends Cathay Pacific’s covid loan for another year

Cathay Pacific welcomes the Hong Kong SAR Government’s agreement to extend the drawdown period of the HK$7.8 billion loan facility for 12 months.

This arrangement extends the drawdown period of the facility to 8 June 2022. The bridge loan facility was provided to the airline as part of the HK$39 billion recapitalisation announced on 9 June 2020 to help the airline withstand the industry-wide downturn.

Cathay Pacific Chief Executive Officer Augustus Tang said: “We greatly appreciate the Government’s confidence in the airline and its long-term prospects despite the challenges brought on by the pandemic. We have not drawn down the facility over the past 12 months as we have been adopting a suite of measures to preserve cash. We are thankful for the Government’s decision to extend the drawdown period, which provides us with more flexibility to manage our liquidity position.”

Source: Cathay Pacific