(Reuters) – Alitalia’s banks have agreed to advance 100 million euros ($135 million) towards the loss-making airline’s capital increase to ensure business operations can continue pending the completion of the recapitalization, a source close to the case said on Friday.

The agreement came as Alitalia’s management began a board meeting to approve the planned 300 million euro capital increase which will be backed in part by the Italian post office.

(Writing By James Mackenzie, editing by Danilo Masoni)