Air NZ draws on Govern­ment loan

The Timaru Herald - - Business -

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.

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