Norwegian Air Shuttle will emerge from its period of financial restructuring following the successful conclusion of its Irish examinership, its supplementary reconstruction process in Norway and the capital raise of up to NOK 6,000 million.
The effective time of its emergence from restructuring has been determined by the registration of the share capital increases and the issuance of convertible loans with the Norwegian Register of Business Enterprises, which is expected to occur shortly after close of trading on the Oslo Stock Exchange today.
Throughout the Examinership and Reconstruction processes, Norwegian has reduced its total debt since the end of 2019 by approximately NOK 63 - 65 billion. It has discontinued its long haul operations, reduced its fleet from 156 aircraft to 51 aircraft, as well as terminated aircraft orders with Boeing and Airbus representing CAPEX commitments of approximately NOK 85 billion in aggregated value.
Norwegian has also negotiated and signed competitive agreements for four owned and 44 leased aircraft and intends to operate the fleet on a short-haul network primarily in Norway and the Nordics or from Norway/the Nordics to Continental Europe. An additional three aircraft are under documentation to be retained and leased. All 51 aircraft will be operated based on “Power by the Hour” agreements through Q1 2022 which Norwegian says will significantly increase its flexibility and limit lease payments in the event of a prolonged period with challenging markets due to the COVID-19 pandemic.
The Company's total liabilities upon completion of the Restructuring Proposal will be approximately NOK 16 - 18 billion, of which NOK 5.8 – 6.3 billion is aircraft related debt. The company’s cash balance (including restricted cash) upon completion of the Restructuring Proposal is estimated to be approximately NOK 7 billion.