They can't yet as their normal process seems to be to make an announcement that an announcement will be made, and we haven't had the first announcement yet.
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https://www.nzherald.co.nz/business/...ectid=12317079
Oh dear, its just goes from bad to worse. AIR having to refund heaps of the (as at 31/12/2019 $1,380m) in prepaid tickets because of international flight cancellations.
AIR now in a desperate battle for their own survival.
Shareholders will be hoping they are still able to pay out the 11 cent dividend totalling ~ $124m on 25 March. Surely this should be cancelled for the sake of helping the chances of the airlines survival ?
1:1 rights issue coming at $1 with Govt underwriting the issue ? Get in now before the public realise the full extent of how dire the situation is. No point in waiting till the share price is 25 cents or the airline goes broke....or is there ?
It has gone ex-dividend so I would have thought that AIR will be legally required to pay the dividend as those who bought cum-dividend are legally entitled to getting the dividend.
But does not really matter, does it as $124m is neither here nor there when $500m or more capital will be required to stabilize the balance sheet in the short term.
One option is for the NZ government to provide $500m to $750m one year loan via a convertible note issue with condition attached of a pro-rata rights issue to be made on maturity if conditions have not returned to normal.
Bet you that's being considered - hence, the extended trading halt.
Probably one of the safest airline to invest in with NZ government ownership.
They can't pay the dividend if they are insolvent. I remember a company years ago, maybe Fortex/CBL, that had the same issue.
Qantas was only down 5% today. Governments must have something in the pipeline.
International Consolidated, British Airways owner, is down 28% in early trading
Reality is that the airline industry is going to require massive co-ordinated rescue packages from governments around the world.
Note from the current EU discussion on travel bands, most airlines in the world expect to be bankrupt by May.
:scared:
Do we want Air NZ dragging the Govt down with it? I know there aren't many options, but wow this is ugly. I can only see a scenario where the shareholders end up taking the entire hit - the thing goes bankrupt and the govt picks up the assets and starts again as "Air Aoteroa". I genuinely hope not, but not sure there is another way clear of this without many billions of dollars going down the drain.