Norway quits restructuring, Swedish unit seeks bankruptcy
On schedule, Norwegian (DY, Oslo Gardermoen) exited its six-month restructuring process under bankruptcy protection on May 26, with less than half of its fleet remaining and its debt nearly wiped out from its balance sheet, he announced in a stock market file. .
The new-look low-cost carrier has confirmed that it has met all of the conditions to exit bankruptcy protection in Ireland and Norway. It has raised NOK 6 billion ($ 720 million) in new capital as planned, above the minimum requirement set by the bankruptcy courts in Dublin and Oslo.
Norwegian is now officially relaunched, with fewer flights and a focus on Norway and the Nordic region, but it faces stronger competition – against Wizz Air (W6, Budapest) and start-up Flyr (Oslo Gardermoen) as well. than SAS Scandinavian Airlines (SK, Copenhagen Kastrup) – and lingering uncertainty over demand amid an ongoing pandemic.
“The date of entry into force […] will happen today, ”Norwegian said in its May 26 disclosure. “The effective time […] is subject to the registration of the capital increases and the issuance of convertible loans relating to the capital increase with the Norwegian Enterprise Register, which is expected to take place shortly after the close of trading on the Oslo Stock Exchange today hui. “
During the restructuring, the company managed to reduce its total debt from around NOK 64 billion (USD 7.7 billion) to NOK 16-18 billion (USD 1.9-2.2 billion), of which 5.8 billion – NOK 6.3 billion (USD 700-758 million)) is aircraft debt. Its cash balance, including restricted cash, is estimated to be around NOK 7 billion (USD 842 million).
It reduced its fleet from 156 aircraft to 51, to be operated on time until the end of the first quarter of 2022, and “ended aircraft orders with Boeing and Airbus” representing the CAPEX commitments of some 85 billion NOK (10.2 billion USD) in aggregate value. According to advanced ch-aviation fleets module, the Norwegian fleet currently comprises 53 aircraft, namely 31 B737-800, sixteen B737-8, three B787-8 and three B787-9, although only four B737-800 have been active in recent times.
Existing shareholders will, in principle, now own 4.6% stake in the company, creditors 25.4% and new investors 70%, although the latter may include the possible participation of former shareholders in a share issue. planned, the online business newspaper E24 Næringsliv reported.
At a hearing in Ireland ahead of Easter, Norwegian said she believed she would come out of a restructuring with a total of 3,300 employees, up from 10,215 at the end of 2018.
Similarly, the Swedish branch of the Norwegian airline, Norwegian Air Sweden (LE, Stockholm Arlanda), is declaring bankruptcy, Swedish daily Dagens Industri reported on May 25. Charlotte Holmbergh Jacobsson, Norwegian’s communications manager for Sweden and Finland, told E24 that the branch, which has its own AOC, has no employees and the bankruptcy request has not consequences on operations. The move is part of Norwegian’s restructuring process, she added.
“We planned to wind up the business as the business structure changed to a new, streamlined structure. However, as she has debts that could not be settled during the restructuring, there is unfortunately no alternative but to file for bankruptcy with the Swedish company, ”she said.