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At 11 o’clock Friday, no word had been received from Norwegian about Thursday’s dramatic vote among creditors. Right now, the company has 12 hours of overtime, after the company had already extended the deadline once until Thursday night at 23.
This time, the company has not explained why it is delayed, nor has any new deadline been given.
“As soon as we have something new to say, a message will be sent through the Oslo Stock Exchange,” Norwegian Chief Information Officer Lasse Sandaker-Nielsen wrote in a text message before 08:00 on Friday morning.
Based on DN experience, the standard procedure is that it may take some time before a final count is available after voting at a bondholder meeting, but this was nevertheless expected late on Thursday night .
Nordic Trustee, which coordinates the process, has not responded to DN’s request if a vote was completed Thursday night or if bondholders have been given a new deadline.
Bankruptcy increases
Norwegian bondholders were called to a meeting on Thursday to vote on a proposal to convert debt into equity. Just before the deadline, the proposal was amended and the deadline was postponed until Thursday night.
The deal is a crucial step on the road to save the company and access a state emergency package.
Without an agreement when the term expires on Thursday night, the risk of bankruptcy increases significantly.
Last Monday, Norwegian presented its detailed proposal to, among other things, the owners of the company’s various listed bond loans. There, it was claimed that the company wants lenders to agree to convert up to 85 percent of its debt into equity in “new” Norwegian. On Tuesday, the company modified the proposal and suggested that less of the debt with the company could be converted into shares.
On Thursday, the plans were changed again.
A new “final” proposal
At 3:50 p.m. Thursday, the Nordic administrator sent a message stating that the vote has been postponed.
At 1600, Norwegian sent a stock listing with a renewed offer to bondholders, and the offer is available until 2300 on Thursday night:
In the announcement, the company highlighted some of the proposed changes to the offer to lenders:
- Lenders are partially granted the first right to purchase shares at an upcoming capital raise.
- The time bondholders must commit to sitting on the stocks they receive in crisis resolution is shortened and they have fewer bonds.
- Lenders on the company’s convertible bond loan will receive an immediate conversion upon completion.
- Separate and secure take-off and landing permit receipts (airport slots) to bondholders on NAS07 and NAS08 loans. Lenders will also be part of an advantage here if they increase the values of the slots.
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The possibility that up to 1/5 of the amounts of the loans that are converted into shares can now be converted back to the main call, that is, loans, later, in NAS07 and NAS08.
DN has been in contact with several debtors on Thursday afternoon, and his opinion is that the parties need more time to negotiate the details before it is voted on.
So the company’s proposal was until Thursday night and it was emphasized that the proposal is “final”.
Today’s owners get half the share issue
The latest offer contains updated information on the expected topic of between NOK 300 and 400 million.
- Half of the issued amount will be provided to existing owners.
- 25 percent of the amount will be made available to bondholders and leasing companies that convert debt into equity.
- The last 25 percent will be made available to new shareholders.
Earlier in the week, Norwegian CEO Jacob Schram gave a little insight into the intense and demanding negotiations with creditors. He drew an image with particularly hard fronts, and finally the will to tackle a solution. DN has previously written that several independent sources point out that bondholders are close to saying yes this week.
“A lot is ready to do this,” Schram said Tuesday.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which links directly to our pages. Copying or any 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.
