Norwegian Air said yesterday that it has asked an Irish court to oversee a restructuring of its massive debt as it seeks to stave off collapse amid the coronavirus pandemic, Reuters reported. Norway’s government last week rejected the airline’s plea for another injection of state funds, and the company said the following day it was at risk of having to halt operations in early 2021 unless it got access to more cash. “The main purpose here is to come out of this process quite shortly with a company that is ‘investable’, where we can be attractive again for investors,” Chief Financial Officer Geir Karlsen told Reuters. The company has opted for an Irish process since its aircraft assets are held in Ireland. After growing rapidly to become Europe’s third-largest low-cost airline and the biggest foreign carrier serving New York and other major U.S. cities, Norwegian’s debt and liabilities stood at 66.8 billion crowns ($7.4 billion) at the end of September. Read more.
With the COVID-19 pandemic grinding international travel to a halt, experts on an online panel today at ABI’s International Insolvency Forum will provide their insights into distressed non-U.S. airlines filing for chapter 11 protection, and how their cases may differ from domestic carriers. Click here to register.
