State aid may not be enough to meet Norwegian's cash needs

The budget carrier is currently seeking to restructure its debt to raise enough cash to unlock the maximum NOK 3 billion (£230 million) that has been available by the Norwegian state.

However, ahead of an extraordinary general meeting fixed for 4 May, where the carrier will seek permission from stakeholders to convert sufficient debt to equity to meet the requirements of the Norwegian government, Norwegian has warned anew of the very immediate challenges it faces.

"Norwegian needs to access the Norwegian state aid package of in total NOK 3 billion by mid-May to manage the significant challenges of the current Covid-19 environment and prepare to gradually reopen its route network and bring back furloughed employees," said the carrier in a presentation to bondholders issued on Monday (27 April).

"The NOK 3 billion is assumed to be sufficient to cover the liquidity need until year-end, however, given the high degree of uncertainty on the current market situation, subsequently the exact liquidity need, including size and timing, there could be need for additional funds to have sufficient liquidity runway until operations normalise."