After bondholders and lessors, shareholders also said yes to the rescue plan. Norwegian will receive fresh capital and get rid of high debts.
On Friday there was still resistance. One of four groups of bond holders voted against the plans of Norwegian Air Shuttle. On Sunday, however, the management of the airline succeeded in convincing the rest with improvements. The ailing carrier was also able to reach an agreement with a large number of the lessors over the weekend.
The investors and suppliers must agree to convert their assets (i.e. Norwegian’s debts) into equity. In this way, highly indebted Norwegian can strengthen its weak balance sheet. In addition, the government in Olso made this a prerequisite for state-guaranteed loans worth more than 260 million euros.
Shareholders say yes
But the most important step happened on Monday (May 4). The Extraordinary General Meeting of Shareholders also approved the plan with a large majority of 95 percent, which includes a capital increase in addition to the conversion of debt into capital. As a result of the measures, the company will receive more than 10 billion kronor in new funds.
Norwegian is thus saved for the time being. However, the airline intends to keep the majority of its fleet on the ground until March 2021. Until then, it plans to operate a minimum short-haul flight schedule, which will be served by seven aircraft.