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Norwegian Air Shareholders Reportedly Back Restructuring Plan

Published on Mar 18 2021 2:17 PM in General Industry tagged: norwegian air

Norwegian Air Shareholders Reportedly Back Restructuring Plan

Norwegian Air's shareholders voted in favour of the company's debt restructuring plan on Thursday March 18, business news website E24 has reported.

The vote was the first of several procedural hurdles the airline faces as it battles to survive the coronavirus pandemic which has decimated air travel.

More than 99% of shareholders supported the so-called scheme of arrangement, E24 reported, which will be voted on separately by several groups of creditors on Thursday March 18 and Friday March 19.

Norwegian Air was not immediately available for comment for Reuters.

Norwegian shares were up 1.1% by 0856 GMT on Thursday March 18, outperforming the Oslo benchmark index.

If approved by enough creditors and Ireland's High Court, the plan will enable Norwegian to raise new capital and emerge from bankruptcy protection in Ireland and Norway in May.

Norwegian Air has called the scheme a milestone in the process of securing the airline's future.

As announced last year, the survival plan puts a definitive end to Norwegian's long-haul business, leaving a slimmed-down airline focusing on Nordic and European routes.

Must Raise Four Billion To Five Billion Crowns

As part of the plan, the airline must raise four billion to five billion crowns from new shares and hybrid capital, of which Norway's government has said it is willing to contribute 1.5 billion.

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

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