No creditor opposes the rescue plan – E24

Just after 12:00 Norwegian time on Thursday, the hearing on Norwegian’s bankruptcy protection began and a rescue plan was proposed in the Irish “High Court” in Dublin.

During the review, it emerged that none of the creditors who are actors in the case oppose the rescue plan that is now on the table.

At 5:00 p.m. Norwegian time, the day’s hearing closed and the judge is expected to make his final decision on the rescue plan on Friday.

Creditors who spoke through their attorneys were either positive or neutral to the proposal.

The creditor list is the purest “who’s who” in international aviation.

The list includes Boeing, Airbus, various leasing companies, Lufthansa Technik, Rolls-Royce, various financial institutions such as Wells Fargo, the consulting firm Boston Consulting Group, the Norwegian Institute of Export Credit Guarantees and bondholders. , represented by Nordic. Trustee.

Unknown investor will bet one billion

As part of the rescue plan, Norwegian must raise at least NOK 2.3 billion in fresh capital in the announced share issue.

This is in addition to the 400 million NOK in the issue that is aimed at existing investors and the 1,875 million NOK in hybrid capital, where the Norwegian state will provide 1,500 million NOK.

– There have already been discussions with renowned investors … Management is confident that they will enlist the support of these investors, said Paul Sreenan, counsel for the Irish examiner on the matter.

The lawyer also confirmed one of the rumors that have been circulating about Norwegian recently, and that has been mentioned by Finansavisen:

– The examiner has received confirmation from an investor that, under certain conditions, he will invest one billion crowns in the issue, Sreenan continued, without saying who this investor is.

Had the investor been able to subscribe for these billion, it would have given him an ownership stake of up to 18 percent of Norwegian’s fully diluted share capital after the planned spring share issue. This given that the new shares are issued at approx. 6 crowns as is now.

But at the same time, it is doubtful that an investor is allowed to take a share issue as much as there are so many other investors who say they want to participate.

– DNB Markets has also expressed its confidence that it will be possible to carry out the planned issuance, with the information they have, Sreenan continued.

An Irish and Norwegian process

Norwegian was sent into its greatest crisis thanks to the corona pandemic. The restructuring that we are trying to achieve now is the second during the pandemic.

Norwegian has applied for and obtained bankruptcy protection in both Ireland and Norway for both Irish airline Norwegian Air International, Arctic Aviation, parent company Norwegian Air Shuttle and various subsidiaries.

The Norwegian reconstruction at the Oslo city sheriff’s office follows in the footsteps of the Irish, and is actually the same rescue proposal that is presented there.

Norwegian has organized a race in which creditors who vote yes in Ireland also agree to vote yes in the Norwegian process, to avoid stumbling into the rush of the rescue operation.

The lawyer for the Irish examiner, who runs the company under Irish bankruptcy protection, asks the judge to set May 26 as the date for the implementation of the rescue plan.

Read more about Norwegian’s rescue plan here. Norwegian shareholders already agreed to the plan at a shareholders meeting last week. Norwegian has also obtained the consent of the Irish court to dispose of several aircraft.

See the overview of the important dates in Norwegian’s financial rescue plan below in the case!

10,215-3,300 employees

During the consultation, it emerged that Norwegian believes it will have a total of 3,300 employees in 18 countries after the restructuring.

Norwegian had a maximum of 10,215 employees at the end of 2018.

The most important points of Norwegian’s rescue plan are the following:

• Long-haul investment to be discontinued with the Boeing 787 Dreamliner
• The number of short-haul aircraft (Boeing 737s) will be reduced by more than half to 53 aircraft (50 in operation, 3 in reserve)
• Total (gross) debt will drop to around 20 billion
• The focus will be on the Norwegian and Nordic markets, with routes to the most popular destinations in Europe.
• NOK 4.5 billion will be raised in fresh capital, distributed as follows: 400 million in share issues to existing shareholders, up to 2.6 billion from new investors and up to 1.875 billion in hybrid capital (of which the state provides 1.5 thousand millions)
• Unsecured debt again receives a 5 percent dividend on cash and shares in Norwegian
• The existing shareholders, in principle, will be with 4.6% of the company, the creditors with 25.4% and the new investors with 70%, including the possible participation of the old shareholders in the issuance of shares planned for this spring.
• The price of converting the debt into shares is NOK 8.23, while the issue can be priced at around NOK 6 (as calculated by E24).