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Cathay Pacific proposes $5 billion bailout led by government

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HONG KONG – Financially battered Hong Kong airline Cathay Pacific Airways has proposed the government help fund a 39 billion Hong Kong dollar ($5 billion) recapitalization plan to help it survive the coronavirus pandemic.

Cathay Pacific said in a stock exchange filing on Tuesday that the plan calls for it to issue shares to raise more than 33 billion Hong Kong dollars (over $4.3 billion).

Of that total, about 20 billion Hong Kong dollars ($2.6 billion) would be issued to a new, government-controlled group to be called Aviation 2020.

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