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The airline launched a comprehensive plan to resolve the debt crisis before Easter, and will now ask owners of four bond loans to back the plan.
President Niels Smedegaard (t.v.) and CEO Jacob Schram are now at the forefront of the Norwegian rescue campaign.
Vidar Ruud
published:,
Updating case …
In a stock exchange statement, Norwegian states that it has requested that creditors be called to bondholder meetings on April 30, where the goal is to approve the company’s proposal.
The plan is for all or part of the bond’s debt to be converted into shares, which will help Norwegian meet the state’s established requirements to provide the total loan guarantee of NOK 3 billion.
To vote through the proposal, Norwegian needs a two-thirds majority.
Norwegian has three loans on the bond market, plus a so-called convertible bond loan. Investors here are everything from Norwegian fixed income funds to foreign hedge funds.
The loans are in euros, dollars, Swedish and Norwegian kroner. Measured in NOK, the bond debt amounted to NOK 5.7 billion.
The state has offered a loan guarantee to the Norwegian of three billion, but it is divided into three parts with different requirements.
Focuses on access to the entire package
Norwegian writes that the company has asked about interest exemptions from all financial creditors to gain access to the second part of the bailout package, but that such exemption has not been possible.
Norwegian has met the terms in Part One, which is 300 million. The company is now investing in securing the second and third of the package at once, taking steps to increase the company’s capital.
Norwegian also writes that a sustainable solution will require a significant improvement in the solvency ratio, and therefore the company aims to increase the capital ratio above the state’s eight percent requirement.
Launched Wednesday before Easter, the proposal calls for a large-scale conversion of debt into equity so that debt is reduced and the company can meet state requirements for emergency relief.
In addition to bond loans, Norwegian will request that all or part of the lease debt be converted into shares. The company will also issue new shares.
