Bamboo Airways is planning to increase its charter capital through share issuance by 54% or nearly $425.44 million to fund its operations and pay off debts. The announcement will be made at the Extraordinary General Meeting of Shareholders on April 10, 2023 and it would raise the airline’s charter capital from current VND18.5 trillion to VND28.5 trillion.
The proposed share issuance is slated to take place this year, and there will be no restrictions on the transfer of the newly issued shares. The airline will offer 35 new shares for every 100 held. The airline claims to have found a buyer to take it over and is currently in negotiation but did not reveal any details on the deal.
In addition to paying the share purchase price, the new investor has agreed to be responsible for the payment of principal and interest on previous loans used by the old shareholders.
At the same time, the new investor also supported former Chairman Trinh Van Quyet with a separate amount of money that will be paid into the trading account of Quyet blocked by the Investigation Police Agency.
Bamboo Airways had called for support from several large investors to help the company overcome the current crisis. Him Lam Joint Stock Company has lent Bamboo Airways VND8 trillion.
On March 17, FLC’s Board of Directors approved using its 155 million shares at Bamboo Airways to pay for loans at OCB’s Thang Long Branch.