Tranz Rail Requests Continuation Of Share Trading Suspension
Tranz Rail Holdings Ltd has asked the New Zealand Stock Exchange to continue to noon today the Exchange’s suspension of
trading in the Company’s shares.
The suspension was granted yesterday morning at the request of the Company.
The request follows last night’s announcement by the Company that it expects to conclude its refinancing negotiations
today and obtain all necessary approvals to proceed with its $66 million rights issue.
As a condition of the agreement reached yesterday with its banking syndicate, Tranz Rail has closed around US$81 million
of its US$88 million hedge contracts. As a result, the Company needs to file an amendment to its rights issue prospectus
and have that amendment approved by the relevant regulatory authorities. The Company requires the balance of the morning
to complete these processes in an orderly fashion.