Norwegian Air Nears Rescue Deal After Winning Debtor Support
A Norwegian Air Shuttle ASA aircraft at Stavanger Airport in Norway, on April 30.
Photographer: Carina Johansen/BloombergThis article is for subscribers only.
Norwegian Air Shuttle ASA struck a deal to swap about $1 billion in debt for equity in last ditch talks with bondholders and lessors, taking it one step closer to securing state loan guarantees needed to see it through the coronavirus outbreak.
The guarantees are “crucial to getting through the crisis,” Jacob Schram, the discount carrier’s chief executive officer, said Sunday after the accord with bondholders. Norwegian has also now received “strong support” from plane-leasing firms, it said Monday ahead of a shareholder vote on the survival plan.