Norwegian has been granted permission to delay two debt repayments worth in the region of $380 million (£305 million), giving the low-cost carrier extra time to shore up its balance sheet.
Bondholders on Monday (16 September) voted overwhelmingly in favour of pushing the payments back as Norwegian targets cost reductions of NOK 2 billion (£180 million) by the end of the year.
Earlier this month, Norwegian said it was willing to put up its lucrative slots at Gatwick airport as collateral to secure the extensions it sought on two bonds, the first of which was due in December and the second next August.
The carrier was seeking to delay these until November 2021 and February 2022 respectively, buying it additional time to enact its proposed transition from growth to profitability.
“We’re pleased with the bondholders’ decision to amend the bonds as it will give us added financial headroom going forward,” said Norwegian’s acting CEO Geir Karlsen.
“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.”