SYDNEY - Cathay Pacific Airways Ltd announced on Tuesday a recapitalisation plan worth HK$39 billion ($5.03 billion) led by the Hong Kong government to help it weather the coronavirus pandemic.

The government will be issued HK$19.5 billion of preference shares, HK$1.95 billion of warrants and will provide a HK$7.8 billion bridging loan, Cathay said.

The pact also includes a HK$11.7 billion rights issue to existing shareholders, led by Swire Pacific Ltd and Air China Ltd, which had halted trading on Tuesday morning alongside Cathay, pending an announcement. ($1=HK$7.7502)

(Reporting by Jamie Freed; Editing by Clarence Fernandez) ((Jamie.Freed@thomsonreuters.com; +61 2 9171 7143;))