Ailing LCC Norwegian Air has won support from shareholders, bondholders and aircraft lessors for a 10bn kroner ($1billion) debt-for-equity swap.
At an emergency AGM today he airline’s shareholders voting in favour of all proposals including a 400m kroner share issue.
The plan will hand majority ownership to the airline’s creditors – bondholders and lessors – and leave shareholders with 5.2% of the company.
Agreement on the debt-for-equity swap will unlock 3bn kroner in state aid to help steer the airline through COVID 19. Norway’s government made the package dependent on Norwegian making itself solvent again by wiping out its debt. It has already received 300m kroner from the government.
Bondholders had already backed the plan and the airline said it had secured written consent from the largest holders of the NAS07 bond after it improved some of the terms. It will hold another bondholder vote on 18 May, where the airline will have to formally secure 67% support.
The lessors, who own Norwegian’s aircraft, had also signed up to the plan, the carrier said minutes before the shareholder meeting began.