Air NZ back in play

By Phil Boeyen, ShareChat Business News Editor

Thursday 4th October 2001

Air New Zealand (NZSE: AIRVA) shares are trading again following a four-day suspension with the first trades out of the block down 25% to 30 cents.

The Market Surveillance Panel lifted the suspension at 2pm Thursday with a half-hour of pre-trading following the airline's recapitalisation announcement earlier in the day.

The Panel says it has reviewed the recapitalisation announcement and concluded that the market is sufficiently informed for trading to resume.

"The Panel notes that there are a number of conditions applying to the recapitalisation and expects Air NZ to immediately inform the New Zealand Stock Exchange about any changes or developments in relation to those conditions."

"The Panel understands that the Australian Stock Exchange does not propose to lift its suspension until after 5 October 2001, and then provided that the two conditions relating to confirmation of support from Air NZ's banks and its residual exposure to Ansett have been satisfied."

Air New Zealand has also been granted a number of waivers by the Panel in relation to the Thursday recapitalisation package covering rules such as due diligence and temporary debt funding.

Under the new recapitalisation New Zealanders will take a majority holding in their national carriers via an initial Crown loan of $300 million which will later be repaid in convertible preference shares.

The Crown will also pay up to $585 million for a further stake in ordinary shares.

The return of the Crown to majority shareholder turns the clock back 12 years to 1989, when the airline was privatised. It first began flying in 1940 as Tasman Empire Airways Limited.

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