OSLO: Norwegian Air Shuttle ASA, following the interim protection granted by the Irish courts on 18th November 2020, was yesterday on 7th December 2020 successfully made subject to the examinership process which is a cornerstone of the reorganization plan.
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.
The dual track process will be coordinated by the Company and will not have an impact on the current business.
The Company will continue to operate its route network. Both its bonds and shares will continue to trade as normal on the Oslo Stock Exchange (Oslo Børs).
As earlier stated, Norwegian Reward will continue as normal honouring and earning Cash-Points for its members.
Norwegian last month applied for examinership protection as the carrier seeks to stave off collapse amid the coronavirus pandemic.
The judge said he had agreed to protection of Oslo-based Norwegian Air as well as its Irish subsidiaries as the survival of each was dependent on the survival of the other.
“I have concluded in this case that it is appropriate to appoint an examiner both in relation to the five petitioner companies and also in relation to the related company Norwegian Air Shuttle ASA,” Justice Michael Quinn told the court.
Major Norwegian Air creditors, including aircraft lessors Aercap and BOC Aviation, aircraft manufacturer Airbus did not oppose the petition.
After growing rapidly to become Europe’s third-largest low-cost airline and the biggest foreign carrier serving New York, Norwegian’s debt and liabilities stood at 66.8 billion crowns or $7.7 billion at the end of September.
Only six of the company’s 140 aircraft are currently in use, while the remaining 134 are grounded due to the pandemic, including the company’s entire fleet of Boeing 787 Dreamliners used for its suspended transatlantic flight programme.
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