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Argentine minister to help arrange meeting for unions with Spanish government.

AIRLINE INDUSTRY INFORMATION-(C)1997-2000 M2 COMMUNICATIONS LTD

The Argentinean Infrastructure Minister Nicolas Gallo has stated that he will help representatives of Aerolineas Argentinas employees to arrange a meeting with the Spanish government in order to discuss their takeover plan for the carrier.

Gallo will apparently have the Argentine ambassador in Spain help arrange the meeting with the Spanish government when the delegation arrives there on 12 September.

Sociedad Estatal de Participaciones Industriales (SEPI), a Spanish state holding company that also runs Spanish flag carrier Iberia, owns a 33.6% stake in Aerolineas Argentinas and has recently injected USD208m of fresh capital into the carrier in order to keep it flying.

Shareholders in Aerolineas Argentinas are due to meet in Buenos Aires on 15 September to vote on a downsizing plan proposed by SEPI and three unions are also hoping to have an employee plan for the carrier approved.

The plan proposes raising USD300m in bridge financing over 18 months using Aerolineas Argentinas shares and credit card receipts as collateral. The plan then calls for USD300m in variable interest rate bonds to be issued on the Argentine market, convertible into shares and maturing in no less than five years, according to Reuters.

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.END .PUB 430 >PD SEPTEMBER 11, 2000 >JN AIRLINE INDUSTRY INFORMATION .PRICEDATE NOT APPLICABLE .DAY
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Publication:Airline Industry Information
Date:Sep 11, 2000
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