ao link
0 £0.00
This item was added to your basket
Powered by
Credit Strategy homepage

Norwegian Air restructure reduces billions of debt

Norwegian Air has emerged from its six-month long financial reconstruction process, reducing its debt since the end of 2019 by approximately £5.3bn.

It brings to an end a process that began last November when Norwegian Air International Limited and its subsidiary Arctic Aviation Assets entered into an examinership process in Ireland and a reconstruction process in Norway. Its purpose was to reduce debt, rightsize the fleet and secure new capital.

 

Its reconstruction plans - which were approved by courts in Norway and Ireland in the middle of April 2021 - allowed the firm to begin raising capital. On Friday (21 May) it announced it had raised at least NOK6bn (£506m). This, according to Reuters, is more than the at least NOK4.5bn (£379m) it was required to raise. Of this, approximately NOK3.7bn (£312m) was raised through the private placement of new shares, with up to NOK1.8bn (£151m) being raised through new capital perpetual bonds.

 

As part of this process, the company has discontinued its long haul operations, and reduced the size of its fleet from 156 planes down to 51. Additionally, it has terminated aircraft orders with Boeing and Airbus, representing capital expenditure commitments of approximately NOK85bn (£7.1bn) in aggregated value.

 

Norwegian Air chief executive Jacob Schram said: “I would like to acknowledge and thank everyone who has had faith in us throughout this period. We have been completely dependent on the support of existing and former employees, business partners and shareholders, creditors and not least customers.”


The company’s total liabilities upon completion of the restructuring proposal will be approximately NOK16bn-18bn (£1.3bn-£1.5bn) - of which NOK5.8bn-6.3bn (£489m-£531m) is aircraft-related debt - while its cash balance is estimated to be approximately NOK7bn (£590m).

Please login to continue reading this article.

Not a member?

Become a member

FREE registration. No credit card required

Register now
  • Stay up-to-date with industry news and appointments
  • Hear about events first
  • Read 1 free Premium article per month

Become a premium member

From as little as £3.48 per week

Become Premium
  • All the perks of a standard member plus:
  • Access to the entire Credit Strategy website
  • 12 months subscription to Credit Strategy Magazine
  • 25% discount to all conferences
  • Exclusive access to Premium Member only roundtables
  • 50% off award entry fees

LATEST INDUSTRY NEWS STRAIGHT TO YOUR INBOX

READ NEXT

BDO suit against former Rangers’ administrators: What we’ve learnt?

BDO suit against former Rangers’ administrators: What we’ve learnt?

TRI Awards return to in-person for 2021

TRI Awards return to in-person for 2021

Liberty Steel restructure to pay off creditor in full

Liberty Steel restructure to pay off creditor in full

Credit Strategy
LinkedIn page

Member of

Did you find our website useful?

Thank you for your input

Thank you for your feedback

creditstrategy.co.uk – an online news and information service for the UK’s commercial and consumer credit industry. creditstrategy.co.uk is published by Shard Financial Media Limited, registered in England & Wales as 5481132, Axe & Bottle Court, 70 Newcomen St, London, SE1 1YT. All rights reserved. Credit Strategy is committed to diversity in the workplace. @ Copyright Shard Media Group