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Tranz Rail concerned over inaccurate comments

Tranz Rail concerned over inaccurate comments

Auckland -New Zealand Tranz Rail Holdings Limited {NZX:TRH}

Tranz Rail Board Chairman Wayne Walden has today responded to media comments attributed to Toll Holdings Managing Director Paul Little.

Yesterday Mr Little was quoted as saying that "There are financial issues in front of the company that are worse than what we have realized, and if nothing happens then there could well be another financial crisis, another debt repayment crisis within the next few weeks."

Mr Walden says Tranz Rail refutes this assertion. The recent deposit of $44 million by the government has significantly strengthened Tranz Rail Holdings capital position and, in fact, our available banking facility at the end of June was in excess of $20 million. In addition, the company's forward cash flow estimates, which are regularly updated, will see us through the seasonal lows.

"There have been a variety of comments in the market about the new offer to shareholders from Toll. At this point, Tranz Rail urges all shareholders to wait until the Board has received the Grant Samuel report and makes its new recommendation. This recommendation will be available within 14 days of the new offer being made to shareholders.

"The board of Tranz Rail believes that it is extremely important that shareholders are in possession of the correct facts about the company's financial position. This information in combination with the Grant Samuel report will enable them to form a view in relation to the disposal of their shares having been fully informed," said Mr Walden.

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