Alitalia secures support for crunch capital increase

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Cash-strapped Alitalia has secured a vital lifeline after shareholders approved plans for a 300 million ($405 million) capital increase and 200 million in new and confirmation of existing credit lines.

The board has agreed to put forward a 300 million capital increase to existing shareholders. Poste Italane has committed to support 75 million of any shares unsubscribed, while Intesa SanPaolo and UniCredit will underwrite 100 million of any shares left unsubscribed. The latter pair have also committed to providing a bridge to equity of an additional 100 million.

Following today's board meeting Alitalia chief executive Roberto Colaninno highlights the large number of shareholders who have agreed to participate in the capital increase, on top of the 1.27 billion its exiting private shareholders have already invested in the carrier. The board outlines its "deep satisfaction" at the adoption of aa key financial manouvre which it says lays a "solid foundation" for the future of the company.

Alitalia's board will meet again on 14 October