Air Berlin to raise 450 million euros for restructuring in bond issues backed by shareholder

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BERLIN – Germany’s second largest airline Air Berlin says it has agreed upon recapitalization measures involving the sale of a 300 million euro ($415 million) convertible bond to shareholder Etihad Airways and another 150 million euro bond by the end of 2014.

The struggling airline said in a statement late Sunday that the money would help “set necessary preconditions to accelerate and deepen the turnaround leading to sustainable profitability.”

The announcement came after Air Berlin reported a loss of 316 million euros in 2013, as revenues dropped to 4.15 billion euros from 4.31 billion euros in 2012.

Etihad, the United Arab Emirates’ national carrier, holds about 30 per cent of the shares in Air Berlin.

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