General Industry

Norwegian Air Set To Exit Its Restructuring Process After Raising Six Billion Norwegian Crowns

By Dave Simpson
Norwegian Air Set To Exit Its Restructuring Process After Raising Six Billion Norwegian Crowns

Norwegian Air is set to exit its restructuring process this week after raising the six billion Norwegian crowns that it targeted through the sale of perpetual bonds, new shares and a rights issue, the company has said.

Restructuring Process Information

Financed largely by debt, Norwegian Air grew rapidly, serving routes across Europe and flying to North and South America, south-east Asia and the Middle East before the COVID-19 pandemic plunged the budget airline into crisis.

Courts in Ireland and Norway had demanded that the airline raise at least 4.5 billion crowns as part of a scheme to emerge from bankruptcy protection in the two countries on May 26.

The private placement of new shares raised 3.73 billion crowns and was "significantly oversubscribed", the firm said in a statement.

The perpetual bond sale added 1.88 billion crowns from current creditors, while the rights issue to existing shareholders was oversubscribed and the final results are to be settled on May 25, the company said.


The courts in Oslo and Dublin recently gave their approval for Norwegian to sharply cut its debt by converting it to stock so long as it raised the 4.5 billion crowns.

With the pandemic still curbing travel, the company then decided to try and raise an additional 1.5 billion crowns to bolster resources as it exits the restructuring process that it began in December of 2020.

The survival plan brings an end to Norwegian's long-haul business, leaving a slimmed-down carrier focussing on Nordic and European routes.


DNB, ABG Sundal Collier, and Seabury Securities LTD advised Norwegian Air on the capital raise.

News by Reuters, edited by Hospitality Ireland. Click subscribe to sign up for the Hospitality Ireland print edition.