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Norwegian has confirmed that restructuring has been completed and that a state loan guarantee of NOK 3 billion has been approved.
The company has now converted NOK 12.7 billion of debt to equity and laid a foundation for the future, although the next months will remain challenging.
“I want to thank everyone who has supported the company during this unprecedented crisis that has affected the entire the airline industry: The Government and Parliament; customers; employees: shareholders; leasing companies; creditors; bondholders, the travel industry and other Norwegian supporters. Now that we can access the state loan guarantee, we can continue to transform the company. Through this process, the belief in New Norwegian and the company’s strategy have been confirmed by shareholders, the market, bondholders, leasing companies, other creditors and lenders. Nevertheless, the months ahead will remain challenging and with a high degree of uncertainty for the industry. Norwegian will still need to collaborate closely with a number of creditors as the company currently has limited revenues.”
CEO Jacob Schram
Since the end of 2018, Norwegian has taken significant actions to restructure its operations and return to profitability. The company was on the path to deliver a positive net profit in 2020, and this summer was set to be the strongest in the company’s history. Instead, the coronavirus outbreak and global travel restrictions has led to a massive drop in demand.
Norwegian has been forced to restructure and develop a new strategy and business plan.
“In addition to securing that the company survives this crisis, our goal has been that Norwegian should have a strong position in the future airline industry, with a clear direction and strategy. This will ensure sustainable operations and a structure that will be to the benefit of both shareholders, customers and colleagues.”
CEO Jacob Schram
China now owns a large part of Norwegian
As one of the main leasing companies, BOC Aviation has taken over 12.67% of Norwegian. BOC Aviation is part Bank of China, which is in the end owned by the Chinese government.