Apr 2004 Financial News

BWIA to offer new shares

Apr 19, 2004

By Curtis Rampersad
Saturday, April 17th 2004

National airline BWIA has approved a rights issue of new shares to be offered to stockholders.

The BWIA board of directors approved the rights issue which is intended to raise about US$40 million that is "urgently required to reduce some critical liabilities and to stabilise the company", BWIA announced yesterday.

Earlier this month Cabinet agreed to restructure BWIA's balance sheet by pumping in US$30 million to convert debt to equity at the carrier which has piled up huge financial losses over the years.

Additionally, Government will provide US$10 million directly into the cash-strapped carrier, Trade Minister Kenneth Valley told reporters during a press briefing at Whitehall.

Valley also said that BWIA had been performing well over the past few months and had been meeting its commitments to creditors.

Government has appointed consultants SH&E to advise on the future of BWIA and has agreed, as an interim measure that it will be prepared to support the rights issue to the extent of the full amount not taken up by other shareholders, BWIA said in a statement.

The rights issue will offer 27 new shares for every one currently held at a price of TT$0.20.

The approval of the regulatory authorities is being sought as a matter of urgency, BWIA said.

Source: Trinidad Express
http://www.trinidadexpress.com/index.pl/article_business?id=22956469