FOLLOWING the government of Norway’s decision to withhold further support from the airline, and the ongoing Covid-19 pandemic, Norwegian Air Shuttle ASA (Norwegian) has decided to initiate an examinership process in Ireland.
Norwegian has chosen an Irish process since its aircraft assets are held in Ireland and has taken this decision in the interest of its stakeholders.
The purpose of the process is to reduce debt, right size the fleet and secure new capital. This reorganisation process protects the assets of the Norwegian group while allowing the company to focus on the right sizing of the group. The process is estimated to take up to five months.Airline
Norwegian will continue to operate its route network (currently limited due to the Covid situation) and trade as normal on the Oslo Stock Exchange
Jacob Schram, Norwegian CEO, said: “Seeking protection to reorganise under Irish law is a decision that we have taken to secure the future of Norwegian for the benefit of our employees, customers and investors.
“Our aim is to find solutions with our stakeholders that will allow us to emerge as a financially stronger and secure airline.”
The process of examinership in Ireland allows financially sustainable businesses to address elements of the business which require restructuring with the aim of protecting jobs and preserving the core value of the business.
Based on Norwegian’s current cash position and the projections going forward, the company believes it has sufficient liquidity to go through the above-mentioned process.
Thank you for taking the time to read this news article “Norwegian Air seeks financial protection under Irish Law”.