Norwegian Air will this week ask creditors for a solution to prevent the airline from running out of money before the reconstruction process is completed in April, reports Dagens Næringsliv (DN).
At Monday's court hearing in Ireland, where Norwegian has entered into bankruptcy protection for a subsidiary in the ongoing restructuring of the group, Judge Michael Quinn began by asking the lawyers for a summary of where Norwegian stands in its restructuring plans.
Norwegian's lawyer, Brian Kennedy, stated that Norwegian has entered into agreements with several creditors in recent days. The company is now requesting that certain documents submitted at an earlier stage related to these counterparties be excluded from the case.
Regarding the risks of waiting for a solution until the end of April, the lawyer said that there is a risk that Norwegian will run out of capital.
”To avoid this, we would like to have more agreements in place by Thursday or Friday this week,” Brian Kennedy said, according to the newspaper.
Norwegian has previously announced a share issue, which will see the company raise 4-5 billion Norwegian kroner through a complex operation, including government backing for a hybrid bond. Norwegian expects to have completed the issues by the end of March.
After Norwegian announced the issuance announcement, several of the major creditors that the airline owes money fought back, including plans for aircraft redelivery. Several leasing companies are some of Norwegian's largest creditors and owners after the airline began converting debt into shares this spring to save operations in the pandemic-triggered crisis that has hit the airline industry.
Source: Direct News Agency
