The holders of a hybrid bond issued by the Dax group Lufthansa in 2015 will initially not receive any further interest payments.
As long as the German state has a stake in Lufthansa through the economic stabilization fund, the group will forego coupon payments, the company announced on Wednesday evening.
The reason for the interest dropout, according to Lufthansa: The EU Commission would consider an interest payment as a violation of the rules on state aid in the corona pandemic.
However, the suspension does not result in the forfeiture of entitlement to coupon payments.
The creditors of the hybrid bond are to receive the interest retrospectively as soon as the economic stabilization fund has been replaced as a silent investor in the group.
In addition, Lufthansa has no other corporate bonds on which interest or coupon payments could be suspended.
The share fell slightly after the trading session on the Tradegate trading platform.