FRANKFURT - Thyssenkrupp has secured state aid of around 1 billion euros ($1.09 billion) to get through a bottleneck until money from the sale of its elevator division comes in, a source close to the matter said on Thursday.
The loan from state development bank KfW expires at the end of September, the source said, adding that the company was suffering from slow demand for auto parts as car makers have shut down production due to the COVID 19 pandemic.
Thyssenkrupp agreed to sell its elevators division to a consortium of Advent, Cinven and Germany's RAG foundation for 17.2 billion euros in February and is hoping for the money to arrive in June.
Thyssenkrupp and state bank KfW both declined to comment.
Handelsblatt earlier reported the news.
($1 = 0.9186 euros)
(Reporting by Arno Schuetze Editing by Sabine Wollrab and Madeline Chambers) ((MichelleHannah.Martin@thomsonreuters.com; +49 30 2888 5223; Reuters Messaging: MichelleHannah.Martin.thomsonreuters.com@reuters.net))
