A big test for the market and investment confidence this week with news expected on whether there will be coronavirus-driven rescue/recaps of Webjet, Flight Centre and oOH!media.
The shares of the three companies were suspended last week while recaps were arranged will after their finances are battered by the impact of COVID-19 in recent weeks.
Webjet shares fell 32.1% last week and are down 71% so far this year, oOhmedia shares are down 45% for the week and 77% for the year and Flight Centre shares slumped 48% last week to be down more than 77% so far in 2020.
Statements starting today will tell us if big shareholders have the funds and the inclination to repeat what they did in 2008-09 and provided tens of billions of dollars in new capital and helped stave off mass collapses.
More than $160 billion was injected by big shareholders in the GFC in 2008-09.
If the deals happen and are relatively generous and not hard-nosed then that will see a little bit more confidence creep back into the market.
Flight Centre could be the biggest – some analysts suggest it could need $200 million-plus (it was valued at $1 billion when the shares were suspended last week). Webjet was valued at $510 million and oOh!Media at $204 million.
Flight Centre and Webjet shares were suspended until today, oOh!media tomorrow.
