Air New Zealand to Draw On Government Loan After First Annual Loss In 18 Years

Air New Zealand Ltd plans to draw on a NZ$900 million ($596.34 million) government loan within days to help it weather the coronavirus pandemic after reporting its first annual loss in almost two decades, Reuters reported. The funding injection will provide some much needed liquidity as the airline burns through cash, but it will come at a cost. Along with interest rates of 7-9%, the loan gives the government the right to seek repayment through a capital raising after six months or convert the loan to equity. “It was always intended as a short-term funding arrangement,” Chief Financial Officer Jeff McDowall told Reuters in an interview. “It is not cheap because it is short term.” Read more