WASHINGTON/CHICAGO: U.S. Treasury Secretary Steven Mnuchin told major airlines on Friday he wants them to repay some of the US$25 billion in cash grants the U.S. Congress approved last month to cover payroll costs as airlines weather an unprecedented crisis due to the coronavirus, three industry officials briefed on the matter told Reuters.
Three people briefed on the matter said the warrants, which would give the government the right to buy equity at a pre-set price and time, would be equal to 10 per cent of the value of the loan. The majority of the smaller requests sought less than US$10 million and Treasury is not seeking compensation in order to maintain"needed air service," avoiding layoffs"and limiting share buyback and executive compensation."
Airline boards and officials plan to review the proposals all weekend and it is not clear if they will accept the terms or propose a counteroffer. Airline unions and Democrats in the U.S. Congress have pressed Treasury to grant the assistance quickly and without requiring unreasonable conditions on airlines that are struggling.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Singapore Latest News, Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Treasury briefing US airlines on US$32 billion grant program: SourcesUS Treasury Secretary Steven Mnuchin is holding calls with airline CEOs throughout the day and could announce details of a US$32 billion payroll ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Nissan seeks US$4.6 billion credit line as coronavirus hammers car demand -sourcesNissan Motor Co Ltd has requested a US$4.6 billion commitment line from major lenders to cushion the impact of the coronavirus pandemic while it ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
US approves Google request to use segment of US-Asia undersea cableWASHINGTON (REUTERS) - The Federal Communications Commission (FCC) on Wednesday (April 8) approved Alphabet unit Google's request to use part of an US-Asia undersea telecommunications cable after the company warned it would face significantly higher prices to carry traffic by other means.. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »
US agencies back revoking ability of China Telecom to operate in USWASHINGTON: The U.S. Justice Department and other federal agencies on Thursday called on the Federal Communications Commission (FCC) to revoke ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Coronavirus: Hit by bug, US Pentagon warns enemies 'don't test us'WASHINGTON (AFP) - With an aircraft carrier forced into port and nuclear missile crews hit by Covid-19, the US military wants rivals to understand: Don't test us, we have not been weakened.. Read more at straitstimes.com. Washington hasn’t passed any tests in years. Blowing up just one hospital now would ensure Americans avoid getting treatment and guarantee lasting damage. The downsides of American capitalism finish you off. You are in a position where your oversized army doesn't matter. Who is this message of hot air intended for anyway?🙄
Source: The Straits Times - 🏆 8. / 63 Read more »
US approves US$168 billion of small business loans under coronavirus plan: KudlowThe United States has approved 661,000 loans to small businesses totaling US$168 billion under a program to address the fallout from the novel ...
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »