Adds quote, background OSLO, Ma
Adds quote, background
OSLO, March 11 (Reuters) – Norwegian Air NORR.OL mentioned it had offered an up to date restructuring proposal to collectors on Thursday, a significant step within the airline’s plan to sharply lower debt and trim the fleet to beat the coronavirus pandemic.
If authorised by sufficient collectors and Eire’s Excessive Courtroom, the scheme is predicted to allow Norwegian to boost new capital and so let it emerge from court-provided chapter safety subsequent month.
“This is a vital milestone within the means of securing Norwegian’s future,” Chief Govt Jacob Schram mentioned in a press release.
Collectors with unsecured claims will obtain about 5% of the unique quantity owed within the type of a brand new debt obligation, which can be convertible on sure phrases into shares within the restructured firm, Norwegian mentioned.
Thursday’s transfer was made doable by current progress in court docket proceedings, by which some jet lessors struck voluntary pacts to finish contracts whereas the Dublin court docket authorised the compelled repudiation of others.
($1=8.4032 Norwegian crowns)
(Reporting by Terje Solsvik; Modifying by Edmund Blair and Clarence Fernandez)
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