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Lufthansa still considering protection from creditors: company source - Metro US

Lufthansa still considering protection from creditors: company source

FILE PHOTO: Outbreak of the coronavirus disease (COVID-19) in Frankfurt

FRANKFURT (Reuters) – The idea of German flagship carrier Lufthansa <LHAG.DE> using a type of protection from creditors is not yet off the table, a source at the airline said on Tuesday.

The source added that Lufthansa was still considering the insolvency protection procedure as an alternative if a rescue package limited the company’s ability to compete too much.

Under consideration is a type of creditor protection scheme which requires that a company is not yet insolvent and in which a company’s management can remain in place to execute the restructuring.

Lufthansa declined to comment.

(Reporting by Ilona Wissenbach; Writing by Michelle Martin; Editing by Sabine Wollrab and Arno Schuetze)

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