By Ebru Tuncay, Birsen Altayli and Orhan Coskun

ISTANBUL (Reuters) – Turkey’s wealth fund is in talks to provide emergency funding to flag carrier Turkish Airlines , one of the country’s hardest-hit companies when the coronavirus pandemic halted nearly all flights, four sources told Reuters.

The sources close to the matter said the company, which flies to more destinations worldwide than any other airline, could receive capital or financing support, though nothing had yet been finalised.

It was unclear how much funding the Turkey Wealth Fund (TVF) could make available in what one source called a “bailout”. TVF declined to comment.

In a statement to the stock exchange, Turkish Airlines said the company had not received any information regarding talks being conducted for the provision of capital or financing support to the company.

Measures restricting movement in the wake of the pandemic have led to big losses, layoffs and closures at airlines around the world. One of the biggest, Germany’s Lufthansa

, agreed a $10-billion government bailout in June.

Turkish Airlines posted a loss of 2.23 billion lira ($287 million) in the second quarter when lockdowns at home and abroad were most widespread. It has agreed with a labour union to cut wages by 30-50% until the end of 2021 but avoided layoffs.

“It is very clear that Turkish Airlines is in need of a bailout programme. This could be capital support or financing support,” one of the sources said.

The source added that TVF conducted a broader study of struggling Turkish companies in the transportation and tourism sectors, suggesting other bailouts could be forthcoming.

TVF owns 49.12% of Turkish Airlines, which has a market capitalisation of 14.6 billion lira ($1.9 billion). Its shares have dropped 31% since borders were temporarily closed and domestic and international flights were halted after

By Ebru Tuncay, Birsen Altayli and Orhan Coskun

ISTANBUL (Reuters) – Turkey’s wealth fund is in talks to provide emergency funding to flag carrier Turkish Airlines <THYAO.IS>, one of the country’s hardest-hit companies when the coronavirus pandemic halted nearly all flights, four sources told Reuters.

The sources close to the matter said the company, which flies to more destinations worldwide than any other airline, could receive capital or financing support, though nothing had yet been finalised.

It was unclear how much funding the Turkey Wealth Fund (TVF) could make available in what one source called a “bailout”. TVF declined to comment.

In a statement to the stock exchange, Turkish Airlines said the company had not received any information regarding talks being conducted for the provision of capital or financing support to the company.

Measures restricting movement in the wake of the pandemic have led to big losses, layoffs and closures at airlines around the world. One of the biggest, Germany’s Lufthansa <LHAG.DE>, agreed a $10-billion government bailout in June.

Turkish Airlines posted a loss of 2.23 billion lira ($287 million) in the second quarter when lockdowns at home and abroad were most widespread. It has agreed with a labour union to cut wages by 30-50% until the end of 2021 but avoided layoffs.

“It is very clear that Turkish Airlines is in need of a bailout programme. This could be capital support or financing support,” one of the sources said.

The source added that TVF conducted a broader study of struggling Turkish companies in the transportation and tourism sectors, suggesting other bailouts could be forthcoming.

TVF owns 49.12% of Turkish Airlines, which has a market capitalisation of 14.6 billion lira ($1.9 billion). Its shares have dropped 31% since borders were temporarily closed and domestic and international flights were halted after

NEW YORK (Reuters) – A U.S. judge on Thursday refused to dismiss an indictment accusing state-owned Turkish lender Halkbank

of helping Iran evade American sanctions.

U.S. District Judge Richard Berman in Manhattan rejected Halkbank’s claim that the Foreign Sovereign Immunities Act shielded it from prosecution, saying that law did not appear to grant immunity in criminal proceedings.

He also said an exception for commercial activity “would clearly apply and support the Halkbank prosecution,” citing the bank’s interactions with U.S. Treasury Department officials and its alleged laundering of more than $1 billion through the U.S. financial system.

U.S.-based lawyers for Halkbank did not immediately respond to requests for comment. The Department of Justice did not immediately respond to similar requests.

Halkbank has pleaded not guilty to bank fraud, money laundering and conspiracy charges brought last October.

U.S. prosecutors accused Halkbank of using money servicers and front companies in Iran, Turkey and the United Arab Emirates to evade sanctions, enabling oil and gas revenue to be spent on gold and facilitating sham food and medicine purchases.

They also accused Halkbank of helping Iran secretly transfer $20 billion of otherwise restricted funds, including the $1 billion through U.S. accounts.

A trial is scheduled for March 1, 2021.

Halkbank has separately asked the federal appeals court in Manhattan to replace Berman with a different judge because of his alleged bias, an accusation Berman has denied.

Berman has overseen several related cases, including the 2018 conviction of former Halkbank executive Mehmet Hakan Atilla and a guilty plea by Reza Zarrab, a wealthy Turkish-Iranian gold trader who testified against Atilla.

Halkbank’s case has added tension to U.S.-Turkish relations, and gained renewed attention in former U.S. national security adviser John Bolton’s recent memoir.

Bolton wrote that Turkish President Tayyip Erdogan in 2018 gave U.S. President Donald Trump