A court in Oslo has approved troubled airline Norwegian’s restructuring plan.
The decision follows a similar ruling in Ireland, where the airline’s aircraft and other assets are registered and means the carrier can now go ahead and raise new funds.
Norwegian is already in Examinership in Ireland – a form of bankruptcy protection – while it tries to revive its fortunes. The airline plans to revert to being a short-haul carrier and axe all its long-haul services.
Approval by the Oslo court means creditors in both countries have now approved the reorganisation plan, but the carrier must now secure funds for the final stamp of approval.
“We are very pleased with this important positive decision by the court,” said Jacob Schram, Norwegian chief executive.
“Once we have passed these two biggest legal milestones, we can look forward to continuing the work of raising new equity.”
Norwegian said it expected to complete its fund raising “during the month of May”.