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On Wednesday afternoon, trading in the Norwegian stock was halted pending news from the company. Immediately after the stock market closed, the company announced that it was seeking bankruptcy protection for various subsidiaries in Ireland.
On Thursday morning, the Oslo Stock Exchange announced that Norwegian’s breakout has ended and the shares could be freely traded again. Before the stock market crash, Norwegian shares were priced at NOK 0.47.
However, shortly after the stock market opens, the share price falls above 15 percent. The stock is the fourth most traded on the stock after two minutes of trading.
The main index of the Oslo Stock Exchange has also fallen from the beginning, and is down about 0.6 percent. Most of the ten largest companies in Oslo Børs by market value.
It has between 100 and 150 days
The process Norwegian is going through now means that the company receives protection against large monetary claims from creditors and others, in a period when the company itself is trying to save its finances.
The bankruptcy protection process applies to the company’s subsidiaries, Norwegian Air International Limited (NAI), Arctic Aviation Assets DAC (AAA), and some of AAA’s subsidiaries. Norwegian itself will participate in this process as an affiliated party. All Norwegian aircraft are subject to AAA.
Norwegian chef Jacob Schram. (Photo: Per Thrana)
The company will continue to operate its network and it appears that both stocks and bonds will normally trade on the Oslo Stock Exchange. The Norwegian Reward bonus program will also function normally and members will earn bonus cash points.
Uploaded by Nel
However, not all companies go down on Thursday morning. After the closing of the listing on Wednesday, the hydrogen company Nel announced that it has signed a letter of intent with Iberdrola to develop a green hydrogen production plant of more than 200MW in Spain by 2023.
On Thursday morning, the stock price rises above five percent.
– We are honored that Iberdrola wants to work more closely with us on electrolysis projects on the 100 MW scale. Just as Iberdrola previously contributed to the development of the wind industry, they are now doing the same with hydrogen, Nel CEO Jon André Løkke said in a statement on Wednesday.
Tech company Airthing is up about five percent since the start of Thursday, after presenting third-quarter figures. The share is trading for around NOK 13.5, which is the subscription price set in the issue relative to the listing earlier this year.
The company had a turnover of NOK 43.9 million in the third quarter, compared to NOK 29.2 million in the corresponding period last year.
The company had a negative operating profit of NOK 10.6 million, a slight deterioration from the third quarter of last year when the company lost NOK 9.3 million from operations.
Stock market crash in the US
After opening relatively flat on Wednesday afternoon, the major US stock indices ended with a drop:
- The Dow Jones industrial average fell 1.16 percent.
- The broad S&P 500 Index fell 1.16 percent.
- The Nasdaq Heavy Technology Index fell 0.82 percent.
This is despite the fact that pharmaceutical giant Pfizer and its partner Biontech presented even more promising results in phase 3 trials of their coronary vaccine. According to the companies, the vaccine is 95 percent effective.
When Pfizer announced positive results from its vaccine tests earlier this month, it triggered a sharp rise in prices, but this news was not enough to prevent a widespread stock market crash. However, Pfizer shares were up 0.75 percent, while those of Biontech were up four percent.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content can only be done with written permission or as permitted by law. For more terms, see here.
