Norwegian's board of directors will present a plan on Thursday that will lead to the company being able to exit the reorganization process, a type of bankruptcy protection, that the company's Irish subsidiary has been forced into. The stock rises in early trading on the Oslo Stock Exchange.
The main points of the plan are to reduce the aircraft fleet and achieve a balance sheet that is focused and strong enough to attract new investors and stakeholders, as well as enable potential Norwegian state support.
The crisis plan includes a conversion of debt to equity, which will also include an arrangement that means Norwegian only needs to pay for aircraft when they are used until 2022 – a so-called "power by the hour" arrangement.
The final step in the crisis plan is a share issue of up to NOK 4 billion in the form of ordinary shares and/or hybrid instruments to both current and new shareholders as well as other potential stakeholders.
In a separate press release, Norwegian also proposes a reverse split where 100 old shares give 1 new one. The last day of trading before the split is expected to be December 17.
The stock rises around 9 percent in early trading on the Oslo Stock Exchange.
Source: di.se
