KEY POINTS:
Fisher & Paykel has not been offered government assistance and has not asked for it, Prime Minister John Key said today after talking to the company's chief executive.
Mr Key said at his post-cabinet press conference he called chief executive John Bongard after the appliances company issued its profit warning earlier today.
"They didn't ask for government support. They have a plan and we're looking to them to execute that plan," he said.
"I didn't offer help because it wasn't requested."
Earlier, the company said it expected a net profit of $25 million to $30m, down up to 54 per cent on last year.
Due to the deterioration in the New Zealand dollar, Fisher & Paykel Appliances' total bank debt grew $122 from March last year to $512m at the end of January.
It was predicted to be $570m by the end of March.
It is now looking at reviewing its capital structure and alternative sources of capital.
Mr Key said he had previously stated that the Government did not want to become a "primary banker" for companies that were in trouble, but it was reserving the option for those that fitted certain criteria.
He said F&P was a profitable company.
"They're at the front end of exporting and you're seeing a substantial weakness in the international market. They're clearly at the sharp end," he said.
Asked about F&P's statement that it was considering a cornerstone investor, Mr Key said that was "a credible option".
He was asked how the Government would react if the cornerstone investment came from overseas.
"If it was in breach of overseas investment rules we would have to consider a number of factors," he said.
"If turning it down meant the loss of 1600 jobs and the collapse of a company like F&P, that would be unacceptable to me."
- NZPA
