May 2006 Financial News

Exchange rejects BWIA request

May 23, 2006

THE Trinidad and Tobago Stock Exchange yesterday advised the investing public that its board of directors had turned down a request from national airline BWIA to extend an order to suspend trading of its shares on the exchange for a further three months.

Speaking on condition of anonymity yesterday, several financial experts told Newsday that this decision will not cause the airline’s economic fortunes to nosedive and BWIA needs to give a clear signal to its investors about its future direction.

In a statement yesterday, the Exchange said BWIA’s request for a further three-month extension to its suspension from trading order, which expired on May 15, had been rejected by its board of directors.

BWIA first applied to the Exchange on November 15, 2005 to have its shares suspended from trading for three months since it had appointed a new board of directors with a mandate to restructure the airline. That suspension ended on February 15 but BWIA requested another extension of that suspension to May 15, stating that the airline needed to facilitate the preparation of a business plan and a plan of restructuring. The Exchange added that the matter has now been referred to the Securities and Exchange Commission since BWIA could not clarify exactly when trading of its shares should resume.

Contacted yesterday, several financial experts told Newsday that the Exchange’s decision not to extend the suspension order on BWIA’s shares will not threaten the airline’s stability. One expert explained that just because a company’s shares have been suspended from trading does not mean the company is in trouble. He added that in BWIA’s case, it was a situation where the investing public was not aware of certain information which was privy to only certain other parties such as the Government and the airline’s board of directors.

Another financial expert explained that suspension of trading shares is only a temporary measure and perhaps in this instance, the suspension had gone on for long enough. A third financial investor suggested that BWIA tell its current and prospective investors exactly where its going and give them the option of deciding what they wanted to do.

Efforts to contact BWIA officials for comment yesterday were unsuccessful.

Newsday
Tuesday, 23rd May, 2006