Norwegian Air Drops 60% as Reality Sinks In for Shareholders
- Airline confirms state guarantee, capital raise as expected
- Creditors take over company; Chinese state-owned BOC has 13%
Workers stand near a passenger aircraft, operated by Norwegian Air Shuttle ASA, grounded at Stavanger Airport in Stavanger, Norway, on April 30.
Photographer: Carina Johansen/BloombergThis article is for subscribers only.
Norwegian Air Shuttle ASA dropped as much as 60% after completing a recapitalization that hands control of the company to aircraft lessors and bondholders.
Investors had in recent days stubbornly traded Norwegian’s shares far above the price of a discounted equity issue that came on top of an $830 million debt conversion. On Wednesday, the stock collapsed after the company confirmed it had finally clinched a state-guaranteed loan that will keep it afloat in the next few months and increased its share capital.