SYDNEY: Air New Zealand Ltd plans to draw on a NZ$900mil (US$596.34mil) government loan within days to help it weather the coronavirus pandemic after reporting its first annual loss in almost two decades.
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.
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