[ad_1]
The airline provides better terms to creditors on two loans.
PRIORITIES OF LEASING COMPANIES: In a comment, Norwegian CEO Jacob Schram (t.h) says that the top priority will be to reach an agreement with leasing companies.
Stian Lysberg Solum
published:,
In a statement Sunday, Norwegian writes that they have reached an agreement with the largest bondholders on the loan, where the company does not have the necessary majority.
– Thanks to constructive dialogue and negotiations with bondholders and other parties, I can happily confirm that we have reached an agreement with bondholders, says Norwegian CEO Jacob Schram.
On Friday, Norwegian obtained the majority of creditors on three of the four crisis resolution bond loans, but it also needs approval on the last loan.
The owners of the bond loans are, in short, some of those who have borrowed Norwegian money.
Norwegian needs a majority of at least two-thirds in each of the four bond loans to complete the plan.
On Friday, the stake was 62 percent on a loan, which is a little too low. The announcement does not indicate how much support is in line with the agreement with the largest bondholders.
The top priority now will be to reach an agreement with the leasing companies before the extraordinary general meeting on Monday, May 4. This is also one of the criteria for the implementation of the plan.
– We are now one step closer to gaining access to state loan guarantees that are crucial to overcome this crisis, continues Schram.
The rescue plan briefly explained
On Friday, the Norwegian airline could announce that they had received “solid” support from three of the four groups of bondholders, who have approved the company’s rescue plan.
Also read
Small shareholders can decide the fate of the Norwegians on Monday: – They really only have two options
From the group of owners of the NAS07 loan, the proposal did not receive enough approvals, with 62 percent support. It was just under five percent too little to impact. On Sunday, this is the group of bondholders who have reached an agreement with Norwegian.
He also stated that the leasing companies, which own several of the planes, had provided “strong support” to convert at least $ 550 million of the outstanding shares to Norwegian shares.
The company has proposed that such an agreement be signed before Monday’s general meeting.
Norwegian chief Jacob Schram has previously written that the talks will continue over the weekend.
Also read:
Read on E24 + (for subscribers)
