Bid to revive Sabena confronts new hurdle
The plan to revive parts of the bankrupt state-controlled Belgian airline Sabena was running into difficulties on Thursday, as companies that were asked to support a new group complained the government had been premature in announcing private-sector support.
“We can’t decide when we don’t know who is going to participate,” said someone close to one of the companies concerned. “The announcement could have been premature.”
“People ask you what you can do for the national airline,” added another. “But how can you say to shareholders you’re giving to something that ate up taxpayers’ money for 70 years.”
On Wednesday, Guy Verhofstadt, prime minister, said that “a wholly private” group of 12 companies and institutions was providing E155m ($138m) for an airline to be built around DAT, Sabena’s regional subsidiary. Three state-controlled investment funds would provide an additional E45m.
Separately, talks have continued with Virgin Express, Sir Richard Branson’s Brussels-based carrier.
Mr Verhofstadt did not name any of the private groups concerned, and so far only the financial institutions Fortis, Dexia, KBC and BBL, an ING unit, have confirmed participation.
The companies were gathered for a meeting on Tuesday night, when Sabena management decided to file for bankruptcy, and another on Wednesday, at which Mr Verhofstadt was present.
“The wording of the announcement of the prime minister was made with our consent and we left the meeting with an indication of what he could not say and what he did not say. He did not go beyond that,” said Etienne Davignon, former vice-president of the European Commission who has been helping find investors.
Financial Times
FT.com
