In connection with Norwegian presenting its issuance plans of 400 million Norwegian kroner this morning, the company also announced that it had suspended all non-essential payments.
Dagens Næringsliv writes that in principle "all normal" bills are being put on hold. For example, the company has reached an agreement with state-owned Avinor to postpone payments of fees, rents and deliveries until it has received the government's crisis package.
HBK Holding, which owns the headquarters at Fornebu, is also said to have given the airline a deferral of the rent.
Norwegian expresses it as continuing active payment routines are tied to "minimum flight operations, minimum payroll costs, critical IT infrastructure and other critical operational payments, primarily related to the seven planes in operation.".
Only between 600 and 700 people are working as usual and have a salary in the company. That's about a tenth of the workforce before the corona crisis.
To top it all off, Norwegian is forced to admit that it has lost around 880 million Norwegian kroner on fuel hedges until mid-April, as a result of the falling oil price, writes Dagens Næringsliv.
By mid-May at the latest, the company must have access to the Norwegian government's support package of 3 billion kronor - then the cash will run out. Until then, it is a hectic program with several crucial milestones: The company's bondholders must have agreed to convert the debts into shares by this week at the latest. On May 4, shareholders will decide whether to accept the company's rescue plan or not, and between May 5 and 13, the issue will be carried out.
The company then hopes to have access to the support package on May 14.
But Norwegian after corona will be around a third smaller than before. The company's fleet of 168 aircraft is expected to be reduced to between 110 and 120 planes in the future.
The company's planned restart of operations is that the Norwegian part of the short- and medium-haul operations will be operational until mid-summer, and the foreign flight operations are expected to be built up during the summer. In parallel, the long-haul operations will be built up this summer.
Norwegian shares plunged in early trading on Monday, falling nearly 14 percent at their peak. By lunchtime, however, they had recovered to a 4.4 percent decline. Since the start of the year, the company has lost 85 percent of its value.
Source: di.se
