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The crisis-hit airline gives creditors carrots to contribute fresh money on the issue where Norwegian will raise capital.
Norwegian chef Jacob Schram.
Hanna Kristin Hjardar / E24
published:,
Updated.
In order for its bondholders to have a crisis solution, Norwegian announces new offers on Thursday afternoon. This postpones the bondholder meeting, which was due to start at 4pm, where the goal was to approve the airline’s bailout proposal.
Norwegian reports the following offer change to lenders on Thursday:
- They grant bondholders a partial preferential right to raise capital to be made after debt conversion.
- The airline resolves blocking requirements that establish how long creditors must hold the shares they receive through the conversion.
- Bondholders on the convertible loan have the opportunity to convert the remainder of the loan immediately after the primary conversion.
- Norwegian will protect the proceeds from the sale of the so-called slots, all tee times, in Gatwick to insure the bondholders in NAS07 and NAS08, who have a commitment in these slots.
At the same time, Norwegian states that it will reduce the amount of the convertible bond it will convert into shares to 77 percent, if creditors agree to subscribe for a certain number of shares in the share issue, which must be at least NOK 50 million, then .
Lenders who subscribe to shares in the share issue also have the opportunity to obtain 1.6 times more of their “old shares”.
The offer lasts until 11 p.m. Thursday, it appears.
“This is the company’s latest offering,” Norwegian writes in a statement.
Norwegian is in the midst of a major restructuring that the company hopes will save it from bankruptcy during the crown crisis.
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