Etihad Tightens Grip on Air Berlin With $415 Million Bailout

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Etihad Airways PJSC will bail out Air Berlin Plc once more, tightening its hold by providing 300 million euros ($415 million) of funding after the cash-strapped German carrier was hit by falling traffic and ballooning losses.

Etihad will buy bonds convertible into stock which will have no maturity and count toward equity, according to a statement today, while Air Berlin will sell at least another 150 million euros in notes, providing 450 million euros in cash.