The airline, which has been hit hard by financial difficulties during the interest rate crisis, is trying to restructure its debt.
Norwegian The shareholders of Norwegian Air have voted in favor of the company’s plan for corporate restructuring, says the Norwegian financial website E24.
More than 99 percent of the shareholders voted in favor of the restructuring proposal, but their approval is only the first step in the implementation of the restructuring program. Norwegian creditors will vote on the matter separately this week.
In addition to creditors, the plan must get through a court in Ireland.
After this, Norwegian can continue its corporate restructuring and start seeking new capital. The company’s exit from the restructuring in Ireland and Norway could then take place in May, according to Reuters.
The aim is to cut the company’s debt burden, reduce the fleet and restructure the economy so that the company can get new financing.
The company’s debt is sought to about SEK 20 billion ie less than EUR 2 billion. In addition, the company would be capitalized with a share issue of SEK 4–5 billion, or approximately EUR 400–500 million. According to Reuters, the Norwegian state has promised to contribute SEK 1.5 billion.
Process began last year, when Norwegian the general meeting authorized management to do virtually anything to save the company. Among other things, the management was authorized to re-own the debt, issue a new share issue and use various other financial instruments.
Now in January Norwegian announced that it would stop long-haul flights. In the future, the company will therefore focus on shorter flights in the Nordic countries and Europe with smaller aircraft.
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