Sporting goods and footwear company Adidas says the German government has approved an emergency loan of 3 billion euros ($3.3 billion) to overcome the drop in business due to the pandemic.
The Herzogenaurach, Germany-based company said on Tuesday it suspended dividend payments, share buybacks and executive bonuses as a condition of obtaining the loan “to get through this unprecedented situation.”
The syndicated revolving loan, not yet signed, includes a commitment of €2.4bn from state development bank KfW and €600m under usual market terms from the company’s banking partners, which include UniCredit, Bank of America, Citibank, Deutsche Bank, HSBC Mizuho Bank and Standard Chartered Bank. Adidas said it will repay the unused portion of the loan, with interest and fees, as soon as possible.
The company said in a statement that it will forgo short-term and long-term bonuses in the year, which are equivalent to 65% of the annual compensation of senior managers. You will also forfeit long-term bonuses for managers at the next lower level.
“At this point, the future development of the coronavirus outbreak and its impact on the company’s business cannot be forecast.“, said adidas. “This is why Adidas cannot forecast an outlook for all of 2020 that includes this impact.”.
FEATURED VIDEO
This is the search for the vaccine against Covid-19 in Germany
:quality(75)/dvgnzpfv30f28.cloudfront.net/04-14-2020/t_88380dfb61e8421e9302258c2d622db9_name_file_640x360_600_v3_.jpg)
