Government provides $550M credit to Air NZ, ups SIA cap

By Phil Boeyen, ShareChat Business News Editor

Thursday 13th September 2001

The government is to underwrite Air New Zealand (NZSE: AIRVA) by up to $550 million as part of the airline's restructuring and Singapore Airlines and Brierley Investments (NZSE: BRY) will also put in more money.

Finance Minister Michael Cullen announced at a Wellington press conference at midday that the government will provide a revolving credit facility of $200 million and another standby amount of $350 million.

The loans will be provided on commercial terms.

Singapore Airlines and BIL will also put up another $150 million each, giving Air NZ access to a total of up to $850 million.

The government is also lifting the cap on Singapore Airlines holding to 35%.

Mr Cullen says today's announcement is the result of two months of negotiations between the airline, its main shareholders and the government.

There will be 9 members on the Air NZ board, including three Singapore Airlines representatives and three from Brierley.

Air New Zealand is expected to release its full-year results shortly.

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