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Norwegian writes in a press release on Tuesday that the company sent a request to Asker and the Bærum District Court to begin reconstruction negotiations in Norway, in parallel with a similar process in Ireland.
By agreement between Asker and the Bærum District Court and the Oslo City Sheriff’s Office, the latter processes the application, despite the fact that it has been sent to Asker and Bærum.
Norwegian received your application for bankruptcy protection from Irish Supreme court Monday.
– A parallel reconstruction under Norwegian law will be to the advantage of all affected parties and will increase the probability of a successful outcome. Our goal is to secure company jobs and help secure critical infrastructure and value creation in Norway, Norwegian CEO Jacob Schram says in the press release.
After a brief period of listing on the Oslo Stock Exchange on Tuesday, Norwegian stocks are picking up speed and are up more than 20 percent.
On November 18, Norwegian formally submitted an application for bankruptcy protection to the High Court of Ireland. This request was granted on Monday. This means that the company receives protection against large monetary claims from creditors and others, in a period when the company is trying to save the finances of the company.
– We will now make good use of our time and work towards our goal of reducing company debt, reducing the number of aircraft in the fleet, and becoming an attractive company for investors again. We will be ready to face competition for customers after the coronary pandemic, says Schram.
Creditors approved the plans
Norwegian Irish lawyers and KPMG examiner Kieran Wallace argued in front of Judge Michael Quinn on Monday. The case documents describe the critical situation of the airline, and of the subsidiaries in Ireland in particular.
At the meeting, leasing companies Aercap, BOC Aviation and Avolon, which are also Norwegian creditors, said they accept the plans in the application sent to court and are “neutral.”
The Irish Times writes that the SMBC leasing company also accepts the process. Once the major creditors have agreed, the probability that the process will be approved increases. The newspaper also writes that other creditors, including a customer representative with money in favor of canceled tickets, have signed up. It also has an authority in Ireland with € 23 million outstanding in tax funds with Norwegian.
Norwegian points to support
Norway’s share rose a little over 10 percent after the creditors’ proposal in court, and then fell back. There are very important effects on the course.
At the court hearing, Norwegian’s lawyers have stated that Norwegian is confident that the process and a new start for the company will be successful, because the company has a strong core business, the support of investors and that there is some opportunity to obtain financial support from the Norwegian authorities before. the crown crisis is over.
A report commissioned by Deloitte Ireland advisor Ken Fennell concludes that Norwegian has a good chance of survival despite Norwegian authorities so far having said no to entering Norwegian with new shares. It emerged in court on Monday.
Up to 150 days of treatment
Norwegian’s goal in the first instance is for the judge to approve bankruptcy protection, and then the treatment will last from 100 to 150 days.
The process is applied to the company Arctic Aviation Assets (AAA), owner of the Norwegian plane, and to the airline Norwegian Air International (NAI). Both companies and their subsidiaries have addresses in Dublin.
The consultation deals with which assets can be included in the process and proposals on how the process should be solved.
Norwegian wants the Norwegian parent company to be part of the process in Ireland through a morning guarantee. If this does not happen, Norwegian will also request a process in Norway:
– We then informed the company about the Norwegian restructuring plan, CFO Geir Karlsen told DN last week.
More than 48 billion in debt
Norwegian has invested all of its aircraft financing through Irish subsidiaries, and there is talk of net interest-bearing debt of NOK 48.5 billion at the end of September this year. The group’s total debt was close to NOK 67 billion.
Most of the debt is related to 140 aircraft that Norwegian owns or leases in:
- Norwegian’s Irish subsidiaries still own 44 short-haul Boeing 737s and 11 long-haul Boeing 787 Dreamliner aircraft. It is financed with bonds, loans and export guarantees.
- Through Irish companies, aircraft are still leased from international leasing companies: a total of 66 Boeing 737 aircraft and 26 long-haul Dreamliner aircraft.
- All aircraft are then registered with various aviation registries in Ireland, UK, Sweden and Norway.
Norwegian emphasizes that Norwegian share trading will continue as normal.
“The processes will have no impact on ongoing operations and the company will continue to fly as planned. Both bonds and stocks will continue to trade normally on the Oslo Stock Exchange. As mentioned above, Norwegian Reward will continue normally. , so that members can continue to earn and use CashPoints. “(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 done with written permission or as permitted by law. For more terms, see here.
