AIR - Air NZ.

[ordop]

Shorts do not need to be closed out by tomorrow.

[rayonline]

What would happen on Monday?

[keerti]

If I am short on CFDs, how will that play out from Monday?

[Balance]

No requirement for shorts to cover (unless explicitly stated in their short agreement)? If you are short as it goes ex rights you essentially are now short 2 extra shares at 53c for each 1 you own (i.e. you need to buy back on market 3 shares instead of 1 at some point).

DO CORPORATE ACTIONS AFFECT THE LOAN OF SECURITIES

Corporate actions are events such as dividend payments, takeovers, rights issue, company restructures, returns of capital, buy backs, options exercise, share purchase
plans, and call payments.

In the event of a corporate action being announced it is likely you will be required to close out the position prior to the entitlement date, or be
required to deliver to us either a cash payment, or shares.

[JohnnyTheHorse]

DO CORPORATE ACTIONS AFFECT THE LOAN OF SECURITIES

Corporate actions are events such as dividend payments, takeovers, rights issue, company restructures, returns of capital, buy backs, options exercise, share purchase
plans, and call payments.

In the event of a corporate action being announced it is likely you will be required to close out the position prior to the entitlement date, or be
required to deliver to us either a cash payment, or shares.

Which would typically be extra collateral as if you were short on a sell price of the rights issue. But again will come down to individual agreements.

[Beagle]

GR / JA likely to promote co-governance to safeguard the tax payers share in AIR

Run for the hills lol
Surprised how this held up today. Obviously a lot of people don't realise the seriousness of the situation AIR's balance sheet is in or the challenges they face in the years ahead.

[Arbroath]

Run for the hills lol
Surprised how this held up today. Obviously a lot of people don't realise the seriousness of the situation AIR's balance sheet is in or the challenges they face in the years ahead.

Just saw a retail investor on TV3 say he’ll get as many as he can because the Govt won’t let it fail.

God help us all…

[dobby41]

Just saw a retail investor on TV3 say he’ll get as many as he can because the Govt won’t let it fail.

God help us all…

A lack of understanding for sure.
While the Govt won't let it fail it doesn't mean that the investor will get anything if they have to take over - cents in the dollar.

[Balance]

Just saw a retail investor on TV3 say he’ll get as many as he can because the Govt won’t let it fail.

God help us all…

Don’t be so harsh - I know of many who bought Air NZ shares when it nearly went broke (Ansett debacle) but was rescued by the government. They made money.

[JohnnyTheHorse]

If I am short on CFDs, how will that play out from Monday?

Typically you will have a new position opened short at the issue price. So in this case, if you are short 10,000 shares at $1.40, a new short position of 20,000 shares will be opened at an effective sale price of 53 cents. Say trading opened at 80c, you'd be in $6,000 profit on your original position and $5,400 loss on your new 'rights' position.

You must ensure you have sufficient margin in your account to accommodate these new positions. Additionally, it is also sensible to have significantly extra margin in case they change margin requirements due to heightened volatility.