Skip to content

A&O advises KLM on securing EUR3.4 billion in financing to help weather the Covid-19 crisis

Related people
de Ru Niels
Niels de Ru

Partner

Amsterdam

View profile →

Thomas Andrew
Andrew Thomas

Partner

Amsterdam

View profile →

Erik-Jan Wagenvoort
Erik-Jan Wagenvoort

Senior Associate

Amsterdam

View profile →

Image of Rob de Kort
Rob de Kort

Senior Associate

Amsterdam

View profile →

Hector Craft

Associate

Amsterdam

View profile →

Schillemans Kees
Kees Schillemans

Partner

Amsterdam

View profile →

Stevens Tim
Tim Stevens

Partner

Amsterdam

View profile →

Arnold Croiset van Uchelen

Partner

Amsterdam

View profile →

Sikkink Suzanne
Suzanne Sikkink

Partner

Amsterdam

View profile →

Orban Geza
Géza Orbán

Associate

Amsterdam

View profile →

11 August 2020

A cross-practice team from Allen & Overy Amsterdam advised Dutch airline KLM on securing EUR3.4 billion in financing from the Dutch state, alongside a syndicate of 11 domestic and foreign banks. The financing package will help KLM maintain business continuity through the Covid-19 crisis and strengthen its position for the future. 

The financing package consists of:

  • A 90% State guaranteed revolving credit facility of EUR2.4 billion with a maturity of five years. The facility is granted by 11 banks, comprising three Dutch banks and eight foreign banks.
  • A direct State loan of EUR1bn with a maturity of 5.5 years, subordinated to the revolving credit facility.

The financing package and the conditions under which it is provided by the Dutch state have received parliamentary approval in the Netherlands. In addition, the financing package is subject to approval by the European Commission under the Temporary Framework for State aid measures introduced in the context of Covid-19.

Once this approval has been obtained, KLM will draw up a restructuring plan that meets the conditions imposed by the Dutch state and determines the path for post-Covid-19 recovery. As part of this process, KLM will consult with the trade unions to work out and detail together the employment conditions of KLM employees.

Niels de Ru, partner in Allen & Overy's Amsterdam office, commented: “This was a highly complex transaction because of the many stakeholders and interests involved. Time pressure, public visibility and the seriousness of the Covid-19 crisis added to the challenge. I’m proud that we have been able to support KLM at this critical juncture; they still have an intense period ahead of them and we will continue to provide support when and where possible.”

The Allen & Overy team was led by partner Niels de Ru (Banking). Further specialist advice was provided by partners Andrew Thomas (Global Banking), Kees Schillemans (Competition), Tim Stevens (Corporate) and Suzanne Sikkink (Employment), and Arnold Croiset van Uchelen (Litigation) as well as associates Rob de Kort, Hector Craft and Géza Orbán, and paralegal Leon Zebeda (Banking).

Related expertise