Air New Zealand drawing down government loan

Air New Zealand Ltd. said on Friday it had begun to draw down on a $900 million NZ dollar ($590 million) government debt facility that would give it time to review its capital structure and complete a capital raising by June 2021.

The airline said the New Zealand government had reaffirmed its commitment to maintaining a majority shareholding and its board was in constructive talks with the government about its capital structure and funding. New Zealand is due to hold a national election on Oct. 17, with incumbent Prime Minister Jacinda Ardern leading polls. The airline had last month said it would need to draw down on the government loan to help it weather the severe loss in revenue during the coronavirus pandemic after it reported its first annual loss in nearly two decades.