Yup, the last companies I would help out would be the airports!
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Yup, the last companies I would help out would be the airports!
Dividend - is up in the air.
Undecided - legal options will decide it, morally should not be paid but that is not relevant.
This is from Greg Foran just now.
I agree balance. You either have rule of law or you don't. The dividend should be paid. Deeply discounted rights issue and government support package will keep the company airborne.
Directors could be personally liable either way and I guess they deserve to be. Should have suspended it.
Yeap, I think you would have a strong case if you bought the shares within a very tight timeframe before it went ex divvy, the tighter the timeframe the stronger you case BUT litigation is heinously expensive so unless you bought a massive amount of shares... the only real winner will be your lawyer.
I have never heard of a dividend being declared, it trading ex dividend and then being cancelled by the directors. I guess there's a first time for everything ? I guess they could get out of it on solvency concerns ?
Its probably academic anyway as I suspect a Govt underwritten, large and deeply discounted rights issue is imminent so they'll want the money back one way or the other.
My pick, is it stays in a trading halt and comes out only when the 1:1 Govt underwritten rights issue is announced at $1 share. That would raise about $1,100m and might see them through this thing, perhaps in tandem with a Govt loan further down the track if necessary.
a dividend is a bit like an inheritance isnt it?
you're not entitled to it until you get it.
shorters who have had it deducted on account (this can occur on ex date) should get it refunded if it is cancelled
and vice versa ,
I reckon anyway.
Of course they should pull it if the period they need to look forward (to determine their ability to meet committements) is more than a week or two. If its 12 months then not a shadow of a doubt it should be pulled. UNLESS of course they already have a committment by the state to cover their arse in which case they could continue to pay it - they may know a lot more than we do.
QAN down from $7.46 to $2.86 in 2020 (those figures are not typo's), that a whopping 62% fall in 2.5 months !
If AIR falls by the same percentage when trading resumes that would have it at just $1.17 !
1:1 Cash Issue at $1 underwritten by the Govt raising about $1,100m...the dog barked it first. That might get them through to Christmas and then maybe a loan from the Govt if more time is needed. Don't think I will partake...I estimate all that $1,100m capital will be eaten up in 2020.
Greg was rather insistent today that this Wasn't the same as last time and would not involve another Govt bail out. Instead they have been talking to the banks..
No 777's flying in April. Wide body fleet to consist of 7 787's with a couple of spares.
No 777 to be parked at AKL if at all possible.. AIAL too expensive... They will use CHC as well as Ohakea and possibly Whenuapai.
Jacinda screwed up big time in handling this crisis and in the process, is screwing up the NZ economy and will send many companies to the wall.
Air NZ is particularly vulnerable due to its high fixed operating costs and we will all pay the price if Air NZ is not assisted through this (hopefully short term) crisis.
Government will come to the party - just a question of how and how much.
By all accounts he's made a good first impression but he and the board need to set a much more serious tone to their pay cuts. 15% pay cut when revenue is projected to fall from $6b to $1b, an 83% reduction...I am underwhelmed and it does not set the right tone for the battle ahead. He and the board need to signal the company is on an "economic war footing" A 50% pay cut would send the appropriate message in my view, (not suggesting you or others can afford a pay cut that severe but it is essential the right message is sent).
Trading halt for a few more days
If AIR go broke I suppose those dastardly shorters make a killing?
No difference between people who take a short or a long position. Yes.
Trading halt extended is code for Roberston saying - Oh my goodness your revised business plan will lose nearly $2 billion a year. This does not work. Go away and start with a clean sheet of paper and do a much more thorough job of cutting costs.
Who blinks first?
I would say Jacinda & her 'compassionate & caring' government - it's election year & it's not her money.
Note that she has just thrown another $15m for the bottomless pit Pike River Recovery?
https://www.stuff.co.nz/national/120...river-recovery