Norway

Norway backed Norwegian Air’s survival plan on Thursday as Industry Minister Iselin Nyboe said that the government had no intention of being a shareholder but would stump up cash if private investors did too, Reuters reported. The heavily indebted budget carrier, which has been forced to ground all but six of its 138 aircraft due to the coronavirus crisis, asked the government for help last week. Norwegian was granted bankruptcy protection by courts in Ireland and Norway last year as it seeks to shed much of its debt. It plans to end its long-haul service.

The official overseeing Norwegian Air’s protection from its creditors in Ireland will present a report to the Irish High Court on Jan. 22, having received a business plan from the cash-strapped airline, Reuters reported.. The airline obtained creditor protection this month from courts in Norway and Ireland, giving it some breathing space to restructure its massive debts. Its main aircraft-owning subsidiaries are Irish and its parent company, Norwegian Air ASA, is registered in Norway.

Norwegian Air’s shareholders endorsed the airline’s financial rescue plan on Thursday in a series of votes, one of several hurdles the heavily indebted company must clear to survive the COVID-19 pandemic, Reuters reported. Norwegian Air now faces difficult negotiations with creditors as it tries to reduce its debt and liabilities of 66.8 billion Norwegian crowns ($7.8 billion). It must also find investors and lenders willing to put up fresh cash.

How Irish is Norwegian Air Shuttle? A High Court judge wanted to know last week. Enough to grant protection from creditors, it turned out. A few weeks earlier the Norwegian government was asking the low-cost airline how Norwegian it really was. Not enough to get a second bailout was the government’s conclusion, The Irish Times reported in a commentary. The nationality of a company can often seem unimportant. Businesses are founded in one country, move to a second and can list on the stock exchange in a third, all while their main business could be in a fourth.

Nordic Aviation Capital is the first large aircraft leasing company to be engaged in a corporate restructuring due to Covid-19, ICLG.com reported. A world-leading aircraft leasing company, Nordic Aviation serves 75 airlines in over 50 countries. On 20 August, the company released a press statement announcing the appointment of a new CEO, Patrick de Castelbajac.

Norwegian Air was given additional creditor protection by a court in Norway on Tuesday on top of that granted by an Irish judge on Monday, allowing the cash-strapped airline’s restructuring efforts to continue, Reuters reported. “A supplementary reconstruction process under Norwegian law will be to the benefit of all parties and will increase the likelihood of a successful result,” Chief Executive Jacob Schram said. Norwegian said it could now move forward with the dual-track process.

Norwegian Air, which has filed for bankruptcy protection in Ireland, has reported a 95 per cent collapse in passenger numbers in November, The Irish Times reported. The troubled carrier said 124,481 customers flew with it last month as travel restricions across Europe continued to decimate air travel. The airline is flying just six of its aircraft, as the pandemic has grounded the remaining 134. “The pandemic continues to have a negative impact on our business as travel restrictions remain,” chief executive Jacob Schram said.

Norwegian Air proposed on Thursday to convert debt to equity, offload planes and sell new shares in an attempt to survive the COVID-19 pandemic, which has brought the company to its knees, Reuters reported. As part of the plan, the Oslo-based carrier, which recently applied for bankruptcy protection in an Irish court, aims to raise up to 4 billion Norwegian crowns ($455.4 million) from the sale of new shares or hybrid instruments, it said.

Borr Drilling, a Norwegian contractor of shallow water drilling rigs, warned on Monday that the company continued to face a “very challenging” financial situation after reporting $61.9 million in net loss for the third quarter, Reuters reported. The company said it continued talks with its creditors to improve its liquidity and it was ready to take part in the industry’s consolidation as a number of its peers filed for bankruptcy protection after the latest oil market crash.

Offshore oil drilling contractor Seadrill expects the market for its rigs to remain depressed until late 2021, the Oslo-listed firm said on Friday as it continued talks with creditors over a debt restructuring, Reuters reported. Seadrill, controlled by Norwegian-born billionaire John Fredriksen, in September suspended interest payments after failing to agree with lenders on amending terms for its $5.7 billion bank debt, and warned that restructuring could wipe out its equity.