Saturday, 12 December 2020

Norwegian initiates reorganisation process in Norway

This week a major step in the survival of the popular yet troubled Oslo based Norwegian took place. The firm filed for a reconstruction process under Norwegian law, which will go hand in hand with the Irish Examinership process that had previously been started, 

Following Norwegian being made subject to the examinership process in Ireland on December 7th, the company now wants to enter into a supplementary Norwegian reconstruction process. This was announced in a notice to the Stock Exchange on Tuesday 8th December.

“A supplementary reconstruction process under Norwegian law will be to the benefit of all parties and will increase the likelihood of a successful result. Our aim is to secure jobs in the company and to contribute to securing critical infrastructure and value creation in Norway,” said Norwegian CEO, Jacob Schram.

“We will now concentrate on working towards our goal of reducing company debt, reducing the size of our aircraft fleet, and ensuring that we are a company that investors will find attractive. We will be ready to meet the competition for customers after the COVID-19 pandemic,” said Schram.

Norwegian filed for the Irish Examinership on November 18th. The processes will not have an impact on the current business. The company will continue to operate its route network. Both its bonds and shares will continue to trade as normal on the Oslo Stock Exchange. As earlier stated, Norwegian Reward will continue as normal honouring and earning CashPoints for its members.

There is little hope left in the tanks regarding Norwegian's future, the money has gone, the debt is vast, the support from the government vanished, the search for a buyer was fruitless, goodwill from creditors is evaporating rapidly on a daily basis, flights are continuing with lower and lower passenger numbers. 

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