Norwegian Air has sent its financial reconstruction plan, which would see the carrier greatly reduce its debt and slim its fleet, to creditors and shareholders as it continues to seek to put in place the necessary foundations to survive the Covid crisis.
If approved by courts in Ireland and Norway over the coming weeks, it will allow Norwegian to raise fresh funding as early as next month and emerge from the bankruptcy protection it sought in Ireland last year, with a view to completing the process in May.
"We have had many constructive and challenging negotiations with creditors since the indicative plan was presented on 14 January," said Norwegian chief executive Jacob Schram.
"The examiner in Ireland and the reconstructor in Norway both believe this plan is in the interest of the creditors and shareholders of the company.
"This is an important milestone in the process of securing Norwegian’s future," Schram added.
The examiner will now present Norwegian’s formal restructuring proposal to the Irish high court, which includes how existing and new creditors and shareholders will be involved in the reconstruction.