Fabrib
Forumer storico
WASHINGTON/CHICAGO (Reuters) - U.S. Treasury Secretary Steven Mnuchin told major airlines on Friday he wants them to repay some of the $25 billion in cash grants the U.S. Congress approved last month to cover payroll costs as airlines weather an unprecedented crisis due to the coronavirus, three industry officials briefed on the matter told Reuters.
The Treasury said in a statement Mnuchin will not require passenger air carriers that will receive $100 million in payroll assistance or less to provide compensation and “funds will be available promptly upon approval of their applications.”
Reuters first reported earlier on Friday that Treasury would not seek warrants from smaller regional carriers, which had urged the government not to demand compensation.
Mnuchin spoke with the chief executives of major airlines in separate calls on Friday and told them the department was offering 70% of the aid in grants that would not need to be repaid, and 30% in low-interest loans for which the airlines would be required to offer warrants, the sources said. The interest rates would rise over time if airlines had not repaid them, the sources said.
Three people briefed on the matter said the warrants, which would give the government the right to buy equity at a pre-set price and time, would be equal to 10% of the value of the loan.
That means that every $1 billion in government aid would include $700 million in grants, $300 million in low-interest loans and an option for the government to buy $30 million in shares. Two people said the warrants would be priced at current stock prices.
The Treasury said in a statement Mnuchin will not require passenger air carriers that will receive $100 million in payroll assistance or less to provide compensation and “funds will be available promptly upon approval of their applications.”
Reuters first reported earlier on Friday that Treasury would not seek warrants from smaller regional carriers, which had urged the government not to demand compensation.
Mnuchin spoke with the chief executives of major airlines in separate calls on Friday and told them the department was offering 70% of the aid in grants that would not need to be repaid, and 30% in low-interest loans for which the airlines would be required to offer warrants, the sources said. The interest rates would rise over time if airlines had not repaid them, the sources said.
Three people briefed on the matter said the warrants, which would give the government the right to buy equity at a pre-set price and time, would be equal to 10% of the value of the loan.
That means that every $1 billion in government aid would include $700 million in grants, $300 million in low-interest loans and an option for the government to buy $30 million in shares. Two people said the warrants would be priced at current stock prices.
