Norwegian’s reinvention took a new and significant step after the Oslo County Court issued a favorable ruling on Norwegian’s reconstruction plan in Norway, a measure that follows a similar one obtained two weeks ago in Ireland, a country in which the company also availed itself of judicial protection.
As reported by the airline, the court’s positive conclusion came after creditors approved Norwegian’s reorganization plan during a conciliation period that ended last Friday, April 9.
“We are very satisfied with this important and positive court decision. Once these two most important legal milestones are passed, we can move on to raising more capital» said Jacob Schram, CEO of Norwegian Air Shuttle.
“I am very proud of Norwegian’s accomplishments during this period and I am grateful to work alongside so many colleagues who have shown unwavering commitment and determination to our success. At the same time, I want to recognize the crucial support we have received that has allowed us to continue our business” he added.
With these rulings, Norwegian must now move towards the capital increase, which is expected to be completed during May.
During the last two months of 2020, in addition to presenting these reconstruction processes, it made progress in closing or adjusting other subsidiaries in Spain and the United Kingdom.
The executives hope to reduce the debt from the current 66.8 billion Norwegian kroner (USD 7.87 billion) to 20 billion (USD 2.35 billion) and obtain between 4 and 5 billion kroner through the combination of an issue of rights to the current shareholders, private placement and a hybrid instrument.
Norwegian has closed all its intercontinental routes and during April, based on information obtained by Aviacionline through Cirium. Now its network consists of 20 routes connecting 17 European cities.
