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Tranz Rail continuing with Clifford Bay


Friday 22nd November 2002

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Tranz Rail's plans for a ferry terminal at Clifford Bay in Marlborough have not changed, despite its current financial crisis.

Interisland Line group general manager Thomas Davis said today Tranz Rail's financial situation would be "sorted by the end of the month" and had no impact on Clifford Bay.

"The current situation is one of those little challenges in life -- Clifford Bay is a much bigger project and nothing has changed that," he said.

Mr Davis said Tranz Rail was looking for outside finance for the $90 million Clifford Bay project anyway, so the current financial woes had no effect.

Tranz Rail last night worked out a deal for a new banking facility, amid speculation that the Government could be called in to bail it out.

The company late last night buried the hatchet on its dispute with Citibank, agreeing to break a $US88 million ($NZ175 million) hedge contract central to the company's intricate financial restructuring plan.

That gives the green light to a $66 million rights issue to raise money to pay off debt and provide extra security to the United States owners of Tranz Rail's inter-island ferry Aratere.

Today, Tranz Rail asked the Stock Exchange to continue until noon the suspension of trading in its shares which it requested yesterday.

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