Norwegian seeks creditor protection in Norway

Norwegian (DY, Oslo Gardermoen) has filed for bankruptcy protection in Norway after applications for examinership in Ireland by its Norwegian Air International (D8, Dublin Int’l) and Arctic Aviation Assets subsidiaries were accepted. “Following this determination, Norwegian will now enter into a supplementary Norwegian reconstruction process which enhances the outcome of the Irish process with a view to resize its balance sheet,” it said in a stock market filing. “The dual track process will be coordinated by the Company and will not have an impact on the current business.” Although the COVID-19 pandemic worsened its already precarious financial standing, the Norwegian government’s unwillingness to extend financial aid to the carrier proved the straw that broke the camel’s back. At the end of September, Norwegian’s liabilities stood at NOK66.8 billion krone (USD7.7 billion).