New look Air NZ board

By Phil Boeyen, ShareChat Business News Editor

Thursday 4th October 2001

Air New Zealand's (NZSE: AIRVA) board has undergone an immediate change in the wake of the new recapitalisation agreement.

The company has announced that the new board has been reduced Thursday to eight directors, with Brierley Investment (NZSE: BRY)and Singapore Airlines each having one seat.

Four of the current independent directors will stay on the board while the Crown has two representatives.

One of these - Roger France - has already been appointed and the second Crown director is yet to be approved.

Air NZ says all other existing directors have resigned effective Thursday.

Under the new recapitalisation plans for the airline the government has offered an initial $300 million loan to help settle Ansett liabilities. The loan will later be paid back in convertible preference shares.

The Crown will also pay up to $585 million for ordinary shares in the airline however no more money will be forthcoming from either of the current major shareholders, Brierley Investments or Singapore Airlines.

The new board is made up of acting chairman Jim Farmer, Ralph Norris, Sir Ron Carter, Elizabeth Coutts, C K Cheong, W M Wilson QC and Roger France.

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