Air NZ draws on Government loan
Air New Zealand expects to complete a cash-raise before June and has started tapping into a $900 million Covid-19 support loan from the Government. In a statement to the New Zealand stock exchange yesterday, Air New Zealand chairman Dame Therese Walsh said assuming ‘‘no further material adverse developments’’, the company was expecting to complete a strategic capital structure review by early 2021 and be in a position to proceed with capital raising to be completed before June. She said the Government loan provided the company with necessary liquidity support as it worked on a plan for its future. The Government loan, or Crown Standby Facility, was arranged in March and consists of two facilities which have interest rates of 7 per cent to 9 per cent. The Government owns 52 per cent of the airline and can convert the loan to equity.