Norwegian seeks debt restructure to access vital state aid

The budget carrier will hold an extraordinary general meeting on 4 May whereby it will seek permission to convert sufficient debt to equity to meet the requirements for cash guarantees set out by the Norwegian government, which it said would create a "sustainable platform" for the company’s future.

It will ask key stakeholders, including aircraft lessors, bond holders, convertible bond holders and suppliers, to take part in the process, which could also involve a subsequent private offering of shares in the carrier for straight cash.

Norwegian said the debt conversions and new equity would release liquidity under the government guarantee program, ensuring the company can "sustain the current Covid-19 environment", start preparing to resume flight operations, bring back furloughed employees, and build a "new Norwegian".

It has already met the requirements for the first tranche of available state aid, which amounts to around £23 million.