Tranz Rail Requests Trading Suspension to continue
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.