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Swissair about to receive US$62.5 million bridge loan

Embattled Swissair will be able to continue reduced operations for the foreseeable future because of last-minute financing arranged for ground support subsidiaries, government officials said Friday.

The Finance Ministry, which has been working with Swiss businesses to salvage operations of the national flag carrier, said a US$62.5 million bridge loan would be paid to the plane maintenance unit SR Technics.

It was unclear who would make the payment. A ministry statement said only that it was based on ``an agreement signed by the parties.''

The government, which had said earlier that it would provide no more cash for the subsidiaries, said Friday evening that it was releasing a payment of US$31 million to the airline now that the problem with the subsidiaries had been resolved.

The payment to the airline, which shut down for two days last month because of a lack of cash, was an installment from US$625 million credit facility agreed to earlier.

Swissair Group and the Swiss government are trying to find investors for SR Technics.
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