Oslo (AP) - The low-cost airline Norwegian, which is threatened with bankruptcy, has received the green light from its creditors for a rescue plan.
After days of negotiations, the fourth and last group of creditors also approved the debt restructuring plans, as the airline wrote in a statement to the Oslo Stock Exchange.
Jacob Schram emphasized that this was a step closer to a government loan package that was crucial for getting Norwegian through the crisis. The most important priority now is to reach an agreement with the aircraft lessors before a special general meeting on Monday.
Norwegian had been working for a long time to raise new equity as required by the government loan package. A key part of the plan was to get bond loan owners to convert larger portions of the loan into shares. At the special meeting on Monday, Norwegian shareholders should decide whether to accept the rescue plan.
In the wake of the corona virus pandemic, Norwegian, like many other airlines, is struggling with a significant drop in demand. The Norwegian share has plummeted since the beginning of the Corona crisis, around 7650 employees were temporarily on leave. Four Danish and Swedish subsidiaries of Norwegian, which employ the pilots and cabin crew, have already filed for bankruptcy.
However, the Norwegians had financial problems even before the advent of the corona virus: A rapid expansion course since the company was founded in 1993 had always brought with it high costs and thus greater debts. Last year, the airline also had considerable problems with the Boeing 737 Max 8 jet.
Notification Norwegian