News: Norwegian financial rescue approved in Ireland

A High Court judge in Ireland has approved the next steps in the financial reconstruction of low-cost carrier Norwegian.

Based on this decision, the airline will now send the same proposal for voting in Norway.

Following this, the company will start the process of raising capital with the goal of a final resolution by the end of May.

The Examiner process is a reconstruction involving several of the subsidiaries of the airline based in Ireland.

The goal of the process, which started in November last year, is primarily to strengthen the company financially and to right-size the fleet in order to adapt to future demands.

ADVERTISEMENT

“We are very happy to learn that the Irish High Court has approved the reconstruction plan.

“We can now go forward with the reconstruction in Norway and initiate a capital raise,” said Jacob Schram, chief executive of Norwegian.

The verdict from the Irish High Court was reached following meetings with creditors, whereby a large majority voted in favour of the reconstruction process.

A similar voting process will now take place with the creditors in the Norwegian reconstruction during the next 14 days, prior to the final ruling from the Norwegian court.

The Norwegian reconstruction is therefore continuing as planned, and is expected to be completed by mid-May.

“This is a demanding and ongoing process; however, the result of the court rulings today enforces our beliefs of a positive final outcome.

“We are looking forward to and are preparing fora post-pandemic world, without travel restrictions and open borders,” said Schram.

The decision from the Irish High Court will be legally binding following an appeal period of one month and the company will technically still be in the Examinership until the process of capital raise is finalised.

Read more from the source page

Leave a Reply

Your email address will not be published. Required fields are marked *