A day after its pilots went on strike, SAS, the Scandinavian airline, said on Tuesday that it had filed for chapter 11 bankruptcy protection in the United States, the latest reverberation in a summer of turmoil for European airlines, the New York Times reported. SAS described the filing, made in the U.S. Bankruptcy Court for the Southern District of New York, as the “next step” in a reorganization that would address the money-losing airline’s financial difficulties, including cost reductions of more than $700 million.
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Norway's $1.2 trillion sovereign wealth fund is prepared for a rocky ride as it confronts the biggest geopolitical changes in three decades, its chief executive said on Tuesday, Reuters reported. "We probably face the greatest changes for 30 years," Nicolai Tangen told a Norwegian parliamentary hearing, adding the world's largest sovereign wealth fund expects "growing frictions between superpowers and a reversal of globalisation".
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The world’s largest sovereign-wealth fund wants a better explanation and more accountability for recent mishaps at Credit Suisse Group AG, the Wall Street Journal reported. Norges Bank Investment Management, the arm of the Norwegian central bank that operates the nearly $1.3 trillion fund, said Sunday it supports a shareholder proposal for a special audit into the bank’s relationship with Greensill Capital, a financing partner that went bankrupt in March 2021.
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Norwegian banks are well-equipped if faced with a new downturn and the economic recovery has improved the outlook for financial stability, but risks remain, the central bank said in an annual report on Tuesday, Reuters reported. "The stress test in this report shows that the largest Norwegian banks can weather a sharp downturn without having to tighten lending substantially," Deputy Governor Ida Wolden Bache said in a statement.
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Norway’s new center-left Cabinet has taken office after the incoming prime minister presented a center-left minority government Thursday, a day after a deadly bow-and-arrow attack in a small town, the Associated Press reported. Prime Minister Jonas Gahr Stoere, the leader of Norway’s center-left Labor Party, stood outside the royal palace with his 19-member team — 10 women and nine men — that includes the leader of the euroskeptic Center Party, Trygve Slagsvold Vedum, who becomes finance minister.
Low-cost carrier Norwegian Air Shuttle, which exited bankruptcy protection in May, reported on Tuesday an improvement in its first-half earnings as the beleaguered travel sector picks up speed amid rising vaccinations, the Times of Malta reported. In the first six months of the year, Norwegian posted a net profit of 1.6 billion kroner (€155 million) thanks to financial restructuring, compared to a loss of 5.4 billion kroner in the first half of 2020.
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The Norwegian government has proposed overhauling the taxation system for the petroleum industry, which has been in place since 2005, cutting reimbursements for exploration costs, Finance Minister Jan Tore Sanner said on Tuesday, Reuters reported. "The changes mean that the tax conditions will be tighter and have a more neutral effect on investments. At the same time, we are making sure that companies have predictable framework conditions," Sanner told a news conference.
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Offshore drilling rig contractors Transocean Ltd and Dolphin Drilling have made a new offer to buy the assets of stricken rival Seadrill Ltd, Dolphin's chief executive said on Friday. Oslo-listed Seadrill, founded by Norwegian-born tycoon John Fredriksen, is seeking to emerge from U.S. Chapter 11 bankruptcy proceedings under an alternative financial plan filed in court last month. Seadrill's Oslo-listed shares traded 5.5% up by 1425 GMT, after jumping about 30% earlier on Friday.
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Noble Corp. and a consortium that includes Transocean Ltd. and Dolphin Drilling are competing to acquire the assets of Seadrill Ltd., the bankrupt offshore oil driller controlled by Norwegian-born tycoon John Fredriksen, Reuters reported. Seadrill is trying to emerge from its second U.S. chapter 11 bankruptcy in four years: Like many in the industry, it expanded its drilling rigs too aggressively in the mid-2010s to withstand a subsequent plunge in energy prices and rig hire rates.
Budget carrier Norwegian Air showed poor judgement when it paid bonuses to top management just weeks after emerging from government-backed bankruptcy proceedings, Norway’s industry minister said on Tuesday, Reuters reported. Having shed thousands of jobs during the pandemic and forced creditors to swap billions of dollars in debt for stock in the slimmed-down airline, Norwegian completed a court-ordered financial restructuring in late May.
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