Oslo court and creditors back Norwegian survival plan

Oslo County Court approved Norwegian’s reconstruction plan in Norway on April 12, adding to an earlier approval in Ireland. With creditors in Norway now supporting the survival plan, the company can start the process to raise new capital with the aim of emerging from bankruptcy by the end of May. The plan, announced at the end of last year, axes Norwegian’s low-cost long-haul business leaving a slimmer carrier – 53 aircraft from a pre-pandemic tally of 140 – confined to focus on Nordic and European routes. It also envisages a cut in the airline’s debt to NOK20 billion kroner (USD2.36 billion) from NOK56 billion (USD6.6 billion). The ruling in Norway can be appealed during a period of one month from April 12. “The court reached a positive conclusion after the creditors approved the Norwegian reorganisation plan in a reconciliation period that ended on Friday, April 9,” the airline explained in a statement. It elaborated in an April 12 stock exchange filing: “On April 10, the reconstructor reported that the reconstruction proposals were approved by a majority of the creditors of the company. Today, a judge at Oslo County Court has approved the scheme for an exit from the reconstruction by the company.” Norwegian’s chief executive, Jacob Schram, said he was “very pleased with this important positive decision by the court.” The projected capital raise is for at least NOK4.5 billion (USD531 million) to be generated via new shares and hybrid capital, of which Norway’s government would contribute NOK1.5 billion (USD178 million). Once the new funding has been secured, the rulings in both Ireland and Norway become final. The company aims to exit the restructuring process on May 26.