Forum Archive Index - May 2001

["G Stolwyk" <stolwyk@wave.co.nz>]

 

Readers of my comments on AIR must know that I am in full agreement with responsible commentators suggesting a rights issue or whatever needs to be done to keep AIR flying without recourse to tax payers!

 

There was no direct discussion on the Government issuing of Capital notes to the tune of some $ 700 mill.in that article.

 

It is understood that AIR went to the Goverment to ask for that!

 

For those, who don't know, in the case of a receivership, all genuine debts and borrowings will need to be paid out first, before the Capital Note holder gets his share.

 

So, the Brierly faction on the Board bought the last 50% of Ansett at a very inflated price and kept competing Singapore out by doing so.

 

That was the reason they did pay such a high price!

 

Now, they want the taxpayer to subsidize them - by the issue of shaky  Capital notes!

 

And this, after they just paid out a dividend they could'nt afford to pay!

 

I say this to AIR shareholders: As some of you so strongly supported AIR in these columns, suggest you keep doing so by taking a generous share of any cash issue, if one turns up!

 

We feel for the losses, you made , but as tax payers, won't be held responsible for the gross errors - in my opinion - the AIR Board has committed!

 

Gerry