Banks back Air NZ recapitalisation

By Felicity Anderson, Nzoom.com Business News Editor

Monday 15th October 2001

Air New Zealand says it has reached an agreement with its key bank financiers which ensures their ongoing support.

In a statement to the New Zealand Stock Exchange it says it expects that agreement to be formally confirmed on Monday.

That is likely to satisfy the markets which, despite the government backing of the beleaguered airline, have been looking for the crucial thumbs up from Air NZ's existing financiers.

The banks' deal follows the decision of the Federal Court of Australia on Friday to approve the deal between Ansett's voluntary administrators and Air NZ.

The airline says the payment of $A150 million to the administrators will be made early this week.

The $A150 million comes from the $300 million first tranche of a $885 million package the government announced it would put into Air NZ to recapitalise its balance sheet.

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