New Deal Could Keep Norwegian Air Alive
Norwegian Air is not done yet. The airlines will push ahead with its rescue plan and unlock government aid after winning support from shareholders, bondholders and aircraft lessors for a 10bn kroner ($950M) debt-for-equity swap, The Guardian reports.
The news comes after a weekend of frantic talks. Shareholders overwhelmingly voted to approve the plan at an extraordinary meeting on Monday even though it leaves with them with a small share of ownership. 95% of shareholders voted in favor of all proposals. They are now left with 5.2% of the company, as the majority ownership goes to the airline’s creditors.
The plan means that Norwegian should avoid bankruptcy. The airline had warned it was just weeks from running out of cash and wouldn’t be able to survive even with the Norwegian government rescue funds.
Norwegian Air had seen tremendous growth in recent years, in Europe and beyond. They were constantly offering some of the lowest fares possible for travel between North America and Europe, often in the low $200s for a round-trip.