Tuesday. 18.06.2024
The restructuring plan to save hard-hit airline Norwegian has been provisionally approved by a court in Norway.

The plan had previously been approved by a majority of the group's creditors, the airline announced on Monday. The company is now preparing to raise new capital.

A parallel restructuring process in Ireland had already been given the green light by a court at the end of March.

According to the group, both court decisions will become legally binding once the planned equity capital has been raised. Norwegian expects this to happen in the course of May. At least 4.5 billion Norwegian kroner (530 million dollars) are to be raised.

Norwegian has been fighting the threat of insolvency on two fronts for some time.

Massive debts

In view of massive debts as well as additional problems in the course of the coronavirus crisis, the airline had applied for and received creditor protection in Ireland as well as in its home country Norway at the end of 2020.

The aim is to reduce its high debts, adjust the fleet size and obtain new capital.

As part of the restructuring, the low-cost airline no longer wants to offer long-haul flights in the future and instead concentrate on short-haul routes in Europe and especially in Scandinavia.

Norwegian's restructuring plan to focus on Scandinavia market approved