Norwegian Air Shuttle’s bondholders have accepted a plan for delayed repayment in a meeting yesterday. The move gives Norwegian’s management extra time to turn around the fortunes of the troubled airline.
On 16 September 2019, separate bondholders’ meetings were held in NAS07 and NAS08 and both meetings voted in favour for the proposed amendments with sufficient majority.
Geir Karlsen, acting Chief Executive Officer, said:
“We’re pleased with the bondholders’ decision to amend the bonds as it will give us added financial headroom going forward. We believe it demonstrates faith in our strategy and support of the important measures Norwegian is undertaking to return to profitability. The company’s operational performance continues to improve, and we are on track to reach the targeted cost-reductions of two billion NOK in 2019.”
Norwegian asked for two extra years in which to repay bondholders a total amount of approximately $380 million. The carrier pledged its lucrative slots at London Gatwick airport as part of a comprehensive security package.