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The reorganization proposal gives each creditor the right to recover a dividend of 5 percent of the unsecured liabilities with Norwegian, excluding amounts that can be recovered through participation in future capital raises.
These include a NOK 500 million cash payment to be distributed to creditors and customers, as well as a convertible with a seven-year term and 1 percent interest.
If everything is approved and continues, the dividend, under certain conditions, will be convertible into shares representing up to 25.4 percent of the company’s capital stock after the reorganization and the proposed capital increase.
The plan must be approved by the Supreme Court of Ireland and also in a Norwegian court, before an everlasting hybrid bond is issued.
New investors will receive around 70 percent of Norwegian’s share capital once the process is complete and existing shareholders will be diluted to around 4.6 percent of the current ownership.
The allocation means that the share capital increases to NOK 4.5 billion, divided into NOK 3 billion in shares, including subscription rights worth NOK 400 million and up to NOK 1,875 million consisting of perpetual bonds. Existing creditors have expressed interest in participating with an amount of at least NOK 1.8 billion in capital raising.
If the restructuring is approved, Norwegian plans to complete the capital raising in April, and it will end in May 2021, the company writes.
