ANZ Trading Ceases
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ANZ Trading Ceases
Air New Zealand shares have stopped trading indefinately, pending an official announcement from the company and it's future intentions.
Announcement follows interview comment from PM that small shareholders should hang on to their shares as she believes the company has a viable future.
Stock Exchange was unhappy with comments from the PM, who forms part of the negotiation team and feel that such comments are manipulating the market.
Announcement follows interview comment from PM that small shareholders should hang on to their shares as she believes the company has a viable future.
Stock Exchange was unhappy with comments from the PM, who forms part of the negotiation team and feel that such comments are manipulating the market.
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This was due to a statement made by the PM regarding the future of Air NZ. The PM told shareholders to hold onto shares because the airline definitely had a future. Shares jumped 40% as a result. NZSE saw this as a potentially unfair practice, and paused Air NZ share trading.
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NZSE (0900NZST) has ceased trading of Air New Zealand shares again pending clarification of comments reported below.
Brierley has its own rallying cry for Air New Zealand
28.09.2001 By FRAN O'SULLIVAN and NAOMI LARKIN
Brierley Investments chief executive Greg Terry has talked up Air New Zealand's shares, saying they would quickly climb to 60c if there was an announcement the airline would continue.
Mr Terry's comments come as the Securities Commission investigates market trades in Air NZ shares following sharp price volatility sparked by comments made by Prime Minister Helen Clark this week.
One market player is sitting on an on-paper profit of $3 million after buying shares at 15.5c on Tuesday. Air NZ shares closed yesterday at 40c.
Mr Terry - who leads Air NZ's largest shareholder - made his price prediction as negotiations on a new bailout plan for the airline yesterday entered the detail phase.
He was questioned about Air NZ's share price during a press briefing in Singapore at 4.30 pm (NZT) to unveil Brierley Investment's $US119.6 million ($297 million) loss for the June 30 year.
"I would have thought that at 30 [cents] it could bounce to 60 fairly quickly if there was an announcement that it will continue and that it will continue with full support," he replied.
The chairman of the New Zealand Stock Exchange's market surveillance panel, Bill Falconer, said last night that the panel would seek immediate clarification on the comments.
Under a rescue plan announced on September 13, Brierley Investments and Singapore Airlines committed $150 million each to a rescue plan, with the Government pledging a $550 million loan. The bailout was conditional on a viable business plan, due diligence and the merging of the airline's share classes.
But Mr Terry said Air NZ needed more than $300 million in fresh equity following the US terror attacks, which have savaged global aviation.
"Air NZ's future as a standalone business is dependent on market conditions and Government support."
Brierley Investments had no idea how the situation would be resolved, he added. But there was no need for BIL to write off its investment in Air NZ.
"It is a monopoly airline with about 80 per cent of the market share in New Zealand ... The prime minister has said there will be an Air NZ."
The airline said last night that good progress had been made on discussions between the Government and major stakeholders.
Opposition politicians yesterday continued to bay for Helen Clark's blood, claiming her "Don't Sell" message to Air NZ shareholders might have put her in breach of insider trading rules.
Mr Falconer said "some significance" was attached to her comments, which had prompted uncertainty justifying the Stock Exchange to put a halt on the market while the panel investigated their import ance.
Meanwhile, advertisements challenging the nation to "collectively pitch in" and save Air NZ have triggered an outpouring of support for the airline.
Breakfast cereal maker Dick Hubbard, who shelled out $26,000 for the ads in the country's major newspapers yesterday, said he has been flabbergasted by the response.
"Absolutely overwhelming. Our phone, fax and e-mail just went non-stop."
In the advertisements, Mr Hubbard appealed to the nation to "stand united, to pledge our commitment to Air NZ" by choosing to fly the airline along with donating air points back to the company.
Responses came from a wide cross section of people and companies who pledged support and money, he said. They included Air NZ staff and the airline's chief executive, Gary Toomey.
An open letter organised by airline staff is scheduled to appear in the country's newspapers today calling for New Zealanders to show their support.
Brierley has its own rallying cry for Air New Zealand
28.09.2001 By FRAN O'SULLIVAN and NAOMI LARKIN
Brierley Investments chief executive Greg Terry has talked up Air New Zealand's shares, saying they would quickly climb to 60c if there was an announcement the airline would continue.
Mr Terry's comments come as the Securities Commission investigates market trades in Air NZ shares following sharp price volatility sparked by comments made by Prime Minister Helen Clark this week.
One market player is sitting on an on-paper profit of $3 million after buying shares at 15.5c on Tuesday. Air NZ shares closed yesterday at 40c.
Mr Terry - who leads Air NZ's largest shareholder - made his price prediction as negotiations on a new bailout plan for the airline yesterday entered the detail phase.
He was questioned about Air NZ's share price during a press briefing in Singapore at 4.30 pm (NZT) to unveil Brierley Investment's $US119.6 million ($297 million) loss for the June 30 year.
"I would have thought that at 30 [cents] it could bounce to 60 fairly quickly if there was an announcement that it will continue and that it will continue with full support," he replied.
The chairman of the New Zealand Stock Exchange's market surveillance panel, Bill Falconer, said last night that the panel would seek immediate clarification on the comments.
Under a rescue plan announced on September 13, Brierley Investments and Singapore Airlines committed $150 million each to a rescue plan, with the Government pledging a $550 million loan. The bailout was conditional on a viable business plan, due diligence and the merging of the airline's share classes.
But Mr Terry said Air NZ needed more than $300 million in fresh equity following the US terror attacks, which have savaged global aviation.
"Air NZ's future as a standalone business is dependent on market conditions and Government support."
Brierley Investments had no idea how the situation would be resolved, he added. But there was no need for BIL to write off its investment in Air NZ.
"It is a monopoly airline with about 80 per cent of the market share in New Zealand ... The prime minister has said there will be an Air NZ."
The airline said last night that good progress had been made on discussions between the Government and major stakeholders.
Opposition politicians yesterday continued to bay for Helen Clark's blood, claiming her "Don't Sell" message to Air NZ shareholders might have put her in breach of insider trading rules.
Mr Falconer said "some significance" was attached to her comments, which had prompted uncertainty justifying the Stock Exchange to put a halt on the market while the panel investigated their import ance.
Meanwhile, advertisements challenging the nation to "collectively pitch in" and save Air NZ have triggered an outpouring of support for the airline.
Breakfast cereal maker Dick Hubbard, who shelled out $26,000 for the ads in the country's major newspapers yesterday, said he has been flabbergasted by the response.
"Absolutely overwhelming. Our phone, fax and e-mail just went non-stop."
In the advertisements, Mr Hubbard appealed to the nation to "stand united, to pledge our commitment to Air NZ" by choosing to fly the airline along with donating air points back to the company.
Responses came from a wide cross section of people and companies who pledged support and money, he said. They included Air NZ staff and the airline's chief executive, Gary Toomey.
An open letter organised by airline staff is scheduled to appear in the country's newspapers today calling for New Zealanders to show their support.
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BUSINESS
FRIDAY, 28 SEPTEMBER 2001
B U S I N E S S S T O R Y
Air NZ calls for suspension to stay
28 September 2001
Air New Zealand has requested that today's suspension on trade in its shares stay in place until an announcement on its future is made early next week.
The company also denied a report in The Dominion today that it had defaulted on a loan repayment.
Air New Zealand's shares were today suspended for the second time this week, this time because of share boosting comments from board member Greg Terry, chief executive of Air New Zealand's 30 percent owner Brierley Investments.
Air New Zealand said it had asked the exchange's market surveillance panel to suspend the company's shares "in the best interests of the market until a comprehensive announcement can be made".
The shares would remain suspended at least until the close of Monday business.
Acting chairman Jim Farmer said progress was still continuing to be made in discussions with Brierley, 25 percent owner Singapore Airlines, the Government and "other relevant parties".
Dr Farmer said the company acknowledged that the market was anxious to obtain further information to establish some certainty about steps to be taken to recapitalise the company.
"That remains the objective of current discussions, but those discussions could themselves be prejudiced by premature, incomplete disclosure," he said.
Discussions were expected to continue over the weekend and would have to be completed before any announcement could be made by the company. This is expected to be early next week, Dr Farmer said.
He said that one particular media comment required immediate correction - this was "a very misleading" report claiming that Air New Zealand had failed to repay an ANZ Bank loan which fell due last Thursday.
"The facts are that the loan was replaced by a new loan facility, agreed with the ANZ Bank. The company has been in close discussions with all its banks following the write-off of its investment in Ansett Holdings on September 13 and none of the company's lenders has recalled any of their loans to Air New Zealand."
The Dominion reported that the airline failed to repay a $70 million loan to ANZ and, as a result, other banks, which form part of a syndicate with ANZ, had called in their secured loans amounting to about $900 million.
Dr Farmer said he had no knowledge of any connection between the ANZ Bank loan and the resignation of ANZ chairman Charles Goode.
Mr Goode has referred all comment on why he has resigned to Dr Farmer.
Meanwhile Standard and Poor's lowered Brierley's credit rating by one notch from BBB-minus to BB-plus and has put it on creditwatch negative for another downgrade.
Brierley's loss of its investment grade rating was because it had its investment portfolio was concentrated in the depressed tourism sector, S&P said. As well as Air NZ, Brierley's main asset is Britain's Thistle Hotels.
S&P said the Brierley's debt-asset ratio had significantly deteriorated.
The investment firm yesterday posted a loss of $US119.60 million ($NZ299 million) for the year ended June 30 due to a $US168.2 million exceptional loss item related to part of the charge Air NZ took for losses at unit Ansett.
In another development, the Securities Commission said it would publish terms of reference for its inquiry into Air New Zealand.
Mr Terry yesterday suggested Air NZ's share price would lift 50 percent to 60 cents if an announcement was made that the airline would continue.
"I would have thought that at 30 (cents) it could bounce to 60 fairly quickly if there was an announcement that it will continue and that it will continue with full support," Mr Terry told a news conference.
Under a rescue plan announced on September 13, Brierley and Singapore Airlines, its "partner" in Air New Zealand, committed $150 million each to an airline rescue plan, with the Government pledging a $550 million loan. Singapore currently owns 25 percent of Air NZ.
The bailout was conditional on a viable business plan, a substantial period of due diligence and the merging of Air New Zealand's share classes, Mr Terry said.
Air New Zealand needed more than $300 million in fresh equity following the US terror attacks, which have savaged global aviation. Since the US attacks, airlines globally had been hit heavily, resulting in negative cash flows, he said.
Earlier today, Finance Minister Michael Cullen said through a spokeswoman that the Government and the airline were making "very real progress" in talks about re-capitalisation.
He expressed confidence that there would be a solution "to ensure the ongoing viability of an Air New Zealand".
Dr Cullen also expressed disappointment that Mr Terry made the comments on the share price which led to today's suspension.
FRIDAY, 28 SEPTEMBER 2001
B U S I N E S S S T O R Y
Air NZ calls for suspension to stay
28 September 2001
Air New Zealand has requested that today's suspension on trade in its shares stay in place until an announcement on its future is made early next week.
The company also denied a report in The Dominion today that it had defaulted on a loan repayment.
Air New Zealand's shares were today suspended for the second time this week, this time because of share boosting comments from board member Greg Terry, chief executive of Air New Zealand's 30 percent owner Brierley Investments.
Air New Zealand said it had asked the exchange's market surveillance panel to suspend the company's shares "in the best interests of the market until a comprehensive announcement can be made".
The shares would remain suspended at least until the close of Monday business.
Acting chairman Jim Farmer said progress was still continuing to be made in discussions with Brierley, 25 percent owner Singapore Airlines, the Government and "other relevant parties".
Dr Farmer said the company acknowledged that the market was anxious to obtain further information to establish some certainty about steps to be taken to recapitalise the company.
"That remains the objective of current discussions, but those discussions could themselves be prejudiced by premature, incomplete disclosure," he said.
Discussions were expected to continue over the weekend and would have to be completed before any announcement could be made by the company. This is expected to be early next week, Dr Farmer said.
He said that one particular media comment required immediate correction - this was "a very misleading" report claiming that Air New Zealand had failed to repay an ANZ Bank loan which fell due last Thursday.
"The facts are that the loan was replaced by a new loan facility, agreed with the ANZ Bank. The company has been in close discussions with all its banks following the write-off of its investment in Ansett Holdings on September 13 and none of the company's lenders has recalled any of their loans to Air New Zealand."
The Dominion reported that the airline failed to repay a $70 million loan to ANZ and, as a result, other banks, which form part of a syndicate with ANZ, had called in their secured loans amounting to about $900 million.
Dr Farmer said he had no knowledge of any connection between the ANZ Bank loan and the resignation of ANZ chairman Charles Goode.
Mr Goode has referred all comment on why he has resigned to Dr Farmer.
Meanwhile Standard and Poor's lowered Brierley's credit rating by one notch from BBB-minus to BB-plus and has put it on creditwatch negative for another downgrade.
Brierley's loss of its investment grade rating was because it had its investment portfolio was concentrated in the depressed tourism sector, S&P said. As well as Air NZ, Brierley's main asset is Britain's Thistle Hotels.
S&P said the Brierley's debt-asset ratio had significantly deteriorated.
The investment firm yesterday posted a loss of $US119.60 million ($NZ299 million) for the year ended June 30 due to a $US168.2 million exceptional loss item related to part of the charge Air NZ took for losses at unit Ansett.
In another development, the Securities Commission said it would publish terms of reference for its inquiry into Air New Zealand.
Mr Terry yesterday suggested Air NZ's share price would lift 50 percent to 60 cents if an announcement was made that the airline would continue.
"I would have thought that at 30 (cents) it could bounce to 60 fairly quickly if there was an announcement that it will continue and that it will continue with full support," Mr Terry told a news conference.
Under a rescue plan announced on September 13, Brierley and Singapore Airlines, its "partner" in Air New Zealand, committed $150 million each to an airline rescue plan, with the Government pledging a $550 million loan. Singapore currently owns 25 percent of Air NZ.
The bailout was conditional on a viable business plan, a substantial period of due diligence and the merging of Air New Zealand's share classes, Mr Terry said.
Air New Zealand needed more than $300 million in fresh equity following the US terror attacks, which have savaged global aviation. Since the US attacks, airlines globally had been hit heavily, resulting in negative cash flows, he said.
Earlier today, Finance Minister Michael Cullen said through a spokeswoman that the Government and the airline were making "very real progress" in talks about re-capitalisation.
He expressed confidence that there would be a solution "to ensure the ongoing viability of an Air New Zealand".
Dr Cullen also expressed disappointment that Mr Terry made the comments on the share price which led to today's suspension.
