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Report E24 on Monday afternoon.
The Dublin High Court judge did what Norwegian and twenty of the biggest creditors wanted. Before Monday’s court hearing, it was clear that large international leasing companies that have inadvertently become large owners would accept bankruptcy protection. Creditors were represented in court through their lawyers, in video link.
The large leasing companies Aercap, BOC Aviaton and Avolon made it clear to the court that they were not opposed to the bankruptcy protection petition, but were in principle neutral to the petition.
Bankruptcy protection – examination – applies to several of Norwegian’s Irish subsidiaries, and the Norwegian parent company also receives protection. This means that creditors cannot demand payment or declare bankruptcy, as long as the company has the protection of the court.
Is it Irish Norwegian enough?
Beforehand, there was some tension over whether the judge would accept whether Norwegian is Irish enough to receive bankruptcy protection in Ireland. Norwegian is based in Norway, with subsidiaries in Ireland and several other European countries.
Norwegian argued, among other things, that the company has operations in Ireland, and the judge heard the company about this after just over four hours.
Bankruptcy protection applies to Norwegian’s two Irish subsidiaries, Arctic Aviation Asset (AAA), a company that owns and leases aircraft for Norwegian, and the airline Norwegian Air International (NAI), and three subsidiaries of these two companies.
Norwegian parent company Norwegian Air Shuttle (NAS) receives related party protection.
Norwegian expects and believes that a British court will provide similar protection in the event of bankruptcy in the UK for subsidiaries there.
The Dublin judge’s decision was expected in the market, and NAS stock rose 3.11 percent on the Oslo Stock Exchange on Monday.(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 may only be made with written permission or as permitted by law. For more terms, see here.
