Trading halt continues for Air NZ shares

By Phil Boeyen, ShareChat Business News Editor

Monday 1st October 2001

Air New Zealand's (NZSE: AIRVA) shares remain in limbo with no word Monday on the company's recapitalisation package.

Trading in the company's securities was stopped early on Friday at the carrier's request but the Market Surveillance Panel said it would reconsider the halt at close of trade Monday.

It has now decided to continue the suspension but says the situation will be reviewed in light of any announcements from the company.

Although the only murmurs from the company to date has been that discussions have been 'progressing', there's considerable market speculation that because of the airline's huge debt the government will have to take an equity stake in the airline rather than just lending money, as previously agreed.

Trading in the shares was surrounded by controversy last week after Prime Minister Helen Clark's comment that people should hold onto their shares was interpreted as a 'don't sell' notice by some media, and the market.

This was compounded later in the week when Brierley Investments (NZSE: BRY) boss, Greg Terry, reportedly put a conditional value of 60 cents on the airline's shares.

Questions are also being asked why the company has not announced any staff or service cutbacks given the huge number of airline layoffs globally in wake of the World Trade Centre attacks.

However this is likely to be tied up with the recapitalisation package, which may now include provisions for redundancies and the cost of further restructuring.

Brierley Investments which currently holds 30% in the airline, last week said it remains keen to divest its holding but that won't happen until it can realise some value from its investment.

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