[ad_1]
The airline’s Norwegian pilot and cabin crew subsidiaries have asked Asker and the Bærum District Court to start reconstruction negotiations.
The two companies now included in the reorganization negotiations are Norwegian Pilot Services Norway and Norwegian Cabin Services Norway, both wholly owned by Norwegian, the company writes in a press release.
– The objective of the reorganization process is to emerge from the crisis as a stronger company with reduced debt. The boards of the two subsidiaries have deemed it desirable that they have the same protection as the parent company, Norwegian CEO Jacob Schram says in the report.
The company emphasizes that the news does not affect the employees’ employment conditions, and that wages and other conditions are operating normally. Nor does it affect the layoffs that companies have made.
The operation of the airline will also continue as normal.
Read on E24 +
If Norwegian stock is priced right, Flyr stock must fly high
Positive leasing company
The news comes at the same time as a hearing in the Irish court in the case related to bankruptcy protection in the country.
It has emerged that the leasing company Aercap is now not protesting the restructuring proposal. Attorney Rossa Fanning, who represents the leasing company, emphasized that she still has objections.
Our objections have more to do with the order, not the merits, Fanning said.
There are also “advanced negotiations” underway with various players, according to Norwegian attorney Brian Kennedy.
One of these lenders is Rolls-Royce. The lawyer for the aircraft engine manufacturer, Jon Breslin, said that there was good progress in the negotiations, and that “they can reach an agreement” during the day on Tuesday.
Aircraft maker Airbus is also reaching an agreement with Norwegian. This agreement may be in effect for a new court hearing on Wednesday, according to Kennedy.
also read
Norwegian Updates Creditors’ Record for Iselin Nybø
Modified offer
Just before the weekend, Norwegian made a final offer, in which the conditions for the so-called hybrid loan were raised.
In an earlier proposal, all creditors who invest in the hybrid loan were promised 150 percent of the amount in the form of a six-year interest-free loan. In the last offer, this sum has now been increased to 200 percent.
As E24 wrote on Monday, this means that the Norwegian state can now save the three billion crowns that were awarded in state guarantees in 2020. Trade and Industry Minister Iselin Nybø previously received support from the Storting to add NOK 1.5 billion to the hybrid loan.
