$1 billion rescue deal for Norwegian Air approved

A $1 billion rescue plan has been approved by Norwegian Air Shuttle lessors in an effort to save the Scandinavian LCC amid the COVID-19 crisis.

A report in The Guardian, states an agreement was reached over the weekend after the airline failed to get approval from its fourth NAS07 bondholders. The airline, which has numerous debts is now in discussions with shareholders as it hopes to convert $1.2 billion in debt into equity to comply with the Norwegian government’s criteria for assistance.

The airline is fighting to stay afloat after bondholders rejected a debt-to-equity exchange at a meeting on 30 April. The talks are set to continue to discuss plans to save the airline during the crisis.

Norwegian will run out of cash by the middle of May unless creditors and shareholders can agree on a comprehensive restructuring plan. The government has promised money if the airline can reduce its debt to equity ratio.