Correspondence

[copy of letter received from Tourism Holdings Limited]

Tourism Holdings Limited Tel: +64 9 336 4299

The Beach House Fax: +64 9 309 9269
Level 1, 83 Beach Road www.thlonline.com
Auckland City

PO Box 4293, Shortland Street
Auckland 1140, New Zealand

16 June 2009

Email: admin@nzshareholders.co.nz

Bruce Sheppard
Chairman NZ Shareholders Association
PO Box 6310
Auckland City

Dear Bruce

Re: Letter to THL 8th June 2008 re bank covenants

Thank you for your letter and copy of your personal blog on Stuff.

As you have noted in your letter THL has already (on the 31st March 2009)
confirmed renewal of its banking facilities through to April 2011 and October
2011 for its working capital and term facilities respectively.

THL is in full compliance with its banking covenants and is forecast to
remain in compliance. Detailed information was supplied to our bankers as
part of the renewal including sensitivity analysis to support this.

We do not propose to disclose THL’s bank covenants. I can confirm that
THL was in compliance with its bank covenants at last balance date (the six
months to 31st December 2008) and remains in compliance with its bank
covenants.

Your blog raises a number of issues that I can clarify for THL.

1.
THL regularly reports to its banks (generally monthly) on its results
and forecasts. This has been done for the last 10 years.
Compliance with bank covenants are reported quarterly to our
banks.
2.
Intangible assets, goodwill and any potential impairments relating to
those assets are excluded from THL’s bank covenants calculations.
Accordingly any potential impairments of these assets would not
affect bank ratios.
Maui
Britz
Backpacker
Explore More
Ci Munro
Maui Vehicle Sales
Kiwi Experience
Feejee Experience
TTF – Fiji
Black Water Rafting
Waitomo Glowworm Caves
Ruakuri Cave


3.
THL currently does not revalue any of its assets.
4.
THL’s debt is clearly disclosed in the published group accounts and
in the notes to the accounts. All covenants are measured on a group
basis.
Yours sincerely

Keith Smith
Chairman
Tourism Holdings Limited

16/06/2009
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