Norwegian Air’s shareholders reported to back restructuring plan

Airline clears first of several procedural hurdles as it battles to survive the pandemic

Norwegian Air’s  survival plan puts a definitive end to Norwegian’s long-haul business, leaving a slimmed-down airline focusing on Nordic and European routes. Photograph: iStock

Norwegian Air’s survival plan puts a definitive end to Norwegian’s long-haul business, leaving a slimmed-down airline focusing on Nordic and European routes. Photograph: iStock

 

Norwegian Air’s shareholders reportedly voted in favour of the company’s debt restructuring plan on Thursday.

The vote, which was reported by business news website E24, 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 per cent of shareholders supported the so-called scheme of arrangement, E24 reported, which will be voted on separately by several groups of creditors on Thursday and Friday.

Norwegian shares were up 1.1 per cent in early trade, outperforming the Oslo benchmark index.

If approved by enough creditors and the Irish 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.

As part of the plan the airline must raise 4 billion (€400m) to 5 billion crowns from new shares and hybrid capital, of which Norway’s government has said it is willing to contribute 1.5 billion. – Reuters