Norwegian Air updates offer to creditors in key step towards survival

FILE PHOTO: Norwegian Air Sweden Boeing 737-800 plane SE-RRY approaches Riga International Airport in Riga, Latvia January 17, 2020. REUTERS/Ints Kalnins/File Photo

OSLO (Reuters) – Norwegian Air said it had presented an updated restructuring proposal to creditors on Thursday, a major step in the airline’s plan to sharply cut debt and trim the fleet to overcome the coronavirus pandemic.

If approved by enough creditors and Ireland’s High Court, the scheme is expected to enable Norwegian to raise new capital and so let it emerge from court-provided bankruptcy protection next month.

“This is an important milestone in the process of securing Norwegian’s future,” Chief Executive Jacob Schram said in a statement.

Creditors with unsecured claims will receive about 5% of the original amount owed in the form of a new debt obligation, which will be convertible on certain terms into shares in the restructured company, Norwegian said.

Thursday’s move was made possible by recent progress in court proceedings, in which some jet lessors struck voluntary pacts to end contracts while the Dublin court approved the forced repudiation of others.

($1=8.4032 Norwegian crowns)

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