German tourism and cruise company TUI has revealed €1.2bn ($1.4bn) more emergency funding after posting a huge loss for the three months to 30 June.
It said it had increased a loan from export bank KfW by €1.05bn and plans to issue a convertible bond for €150m to the state Economic Stabilisation Fund (WSF), as it struggles with the effects of Covid-19 on its business.
The deal is subject to a waiver by its other bondholders.
The "stabilisation package" strengthens its position in a volatile market environment over the 2020/21 winter season, and in the case of any further long-term travel restrictions and disruptions due to the pandemic, it said.
The move gives it cash of €2.4bn to weather the storm, after it previously sought a loan package in March.
Sale boosts finances
In July, the group succeeded in selling its Hapag-Lloyd Cruises unit to its joint venture with Royal Caribbean Cruises, TUI Cruises.
"The transaction was successfully completed despite a challenging environment due to the crisis," it said.
As a result, an additional €690m will flow into the group and help to improve liquidity.
The five-ship Hapag-Lloyd Cruises was sold in a deal worth €1.2bn.
TUI's net loss in its third quarter to 30 June was €1.45bn, from a profit of €48m in 2019.
Revenue dropped to just €71.8m from €4.74bn a year ago.
The nine month loss now totals €2.29bn, against a deficit of €240.6m in 2019.
The 18 cruiseships lost €224.3m in the three months to 30 June, versus a loss of €21.8m in the second quarter.
