MADRID- Spain approved a 120 million euro ($143 million) state aid package for engineering company Duro Felguera as part of a programme to help companies struggling financially due to the COVID-19 pandemic, the government said on Tuesday.
Duro Felguera, whose shares were up 2.3% on the day in afternoon trading, is the second Spanish company to benefit from the programme after the government approved a 475 million euro package for Air Europa late last year.
The aid package includes a 20 million euro loan, 30 million euros in equity and the remaining 70 million euro will be hybrid debt convertible into equity, government spokeswoman Maria Jesus Montero told a news conference after the weekly cabinet meeting.
The government has earmarked a 10 billion-euro fund to potentially bail out companies in strategic sectors that are considered viable but are experiencing solvency problems due to the coronavirus.
($1 = 0.8410 euros)
(Reporting by Inti Landauro; Editing by Andrei Khalip) ((Inti.Landauro@thomsonreuters.com;))
