Wednesday, 27 March 2019

WOW air restructuring again in last ditch attempt to stay operating

In an unsurprising move, some of the WOW air bondholders have approved to convert their bonds to equity in the firm in a restructuring bid to save it from insolvency. 

The bondholders have formally approved to convert their bonds into equity and formal discussions with investors have commenced to fund the company, WOW air said, which is an important milestone in financially restructuring the company.

The deal is essential to secure the long-term sustainability of WOW air, which has recently held talks with Icelandair and Indigo Partners - both of which have pulled out. Icelandair has held talks a number of times with WOW management regarding investments and mergers, previous the company said WOW's debts were greater than previously understood which is why they ended talks.  

Where WOW air goes in the future is uncertain, over the last few days it has had to cancel a number of routes as one of its aircraft appears to have been impounded due to lack of payment to the leasing firm.

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