19 Mar 2009

Airport company calls in unpaid capital from shareholders

11:55 am on 19 March 2009

Hamilton International Airport Ltd is to call up $12 million in unpaid capital from its local council shareholders.

The money will be used to retire debt which currently amounts to $16 million.

The company says reducing debt is critical as the airport is facing a massive drop in revenue from a loss of international flights from late next month.

Hamilton City Council, which owns half the airport company, will need to pay $6 million dollars. The other $6 million will be provided by the Waipa, Otorohanga, Waikato and Matamata-Piako District Councils.

Hamilton Mayor Bob Simcock says the council made the commitment in 2004 when it was recognised the airport company's balance sheet needed strengthening.

He says Hamilton City Council will borrow money to cover the payment.