TUI Group shareholders almost unanimously approved three resolutions relating to the recapitalisation and state bailout of the group during an extraordinary general meeting on December 5, 2021.

Around 98% of all present shareholders voted in favour of the EUR509 million euro (USD625 million) capital increase and, by the same proportion, approved the issuance of conversion rights to the German state-owned COVID-rescue economic stabilisation fund (Wirtschaftsstabilisierungsfonds - WSF) worth EUR420 million (USD515 million).

The approvals were the final hurdle for the implementation of the so-called third stabilisation package for the travel group, announced in early December 2020.

The entire "silent contribution" of WSF will total EUR1.091 billion (USD1.34 billion). The outstanding amount of EUR671 million (USD823 million) comprises non-convertible silent participation of EUR280 million (USD343 million) increased by the amount of the outstanding government guarantees, currently standing at EUR391 million (USD481 million). As soon as the guarantees are received, the second silent participation will be reduced accordingly.

"The implementation of the components of the third financing package will also grant an prolongation of a portion of the existing KfW credit line in the amount of EUR500 million (USD613 million). This would otherwise have ceased to be available on April 1, 2021. The partial amount now also has a maturity like the rest of the existing KfW credit line (July 2022)," the group said.

The third package also entails a EUR200 million (USD245 million) syndicated loan granted by state-owned development bank KfW and private banks.

In December, the airline said that it needed additional liquidity due to the renewed wave of travel restrictions affecting the market. It estimated that liquidity will help it weather until the expected relaxation of restrictions in summer 2021.