Monday. 17.06.2024

Norway-based budget airline Norwegian Air's  shareholders on Thursday approved its plans to issue new shares to raise money for the struggling carrier.

At an extra annual general meeting, shareholders also approved converting debt into equity, and revaluing and reissuing shares, the carrier said.

Trading in shares was briefly halted on the Oslo stock exchange during the session, which was held online.

Most of the 15 proposals were carried with support from about 80% of shareholders' votes, Norwegian said in a statement to the Oslo stock exchange.

Norwegian Air was aiming to raise 4 billion kroner (466 million dollars) through the rights issue.

In addition, a number of leasing debts and loans for aircraft are to be converted into equity.

Sharp drop in demand

The airline is one of many that has seen a sharp drop in demand amid the coronavirus pandemic but it has also struggled with debt racked up due to the expansion of its fleet and routes.

Jacob Schram, chief executive, told Norwegian public broadcaster NRK the airline was assessing whether to cut its intercontinental routes.

Last week, the Oslo County Court approved Norwegian's application for reconstruction under Norwegian law.

The decision was announced the day after an Irish court gave similar approval.

According to the Oslo court, the airline owes creditors an estimated 66.8 billion kroner.

The airline is currently operating with a skeleton staff of some 600 employees. The pre-pandemic workforce numbered around 10,000 employees.

Shareholders approve Norwegian Air rescue plan