Saturday, 27 March 2021

Norwegian’s reconstruction process gets temporarily approved in Ireland.

The bankrupt European budget carrier Norwegian has announced its reconstruction ' Examinership' process in Ireland, was approved by the judge in the Irish High Court on Friday.

This decision now paves the way for the airline to send the same proposal for voting in Norway, which enables the firm to start the process of raising capital with the goal of a final resolution by the end of May.

The Examiner process in Ireland is a reconstruction involving several of the company’s Irish subsidiaries. The goal of the process, which started on 18th November last year.  

“We are very happy to learn that the Irish High Court has approved the reconstruction plan. We can now go forward with the reconstruction in Norway and initiate a capital raise.”Says Jacob Schram, CEO of Norwegian.  “This is a demanding and ongoing process,however, the result of the court rulings today enforces our beliefs of a positive final outcome. We are looking forward to and are preparing fora post-pandemic world, without travel restrictions and open borders.”Said Schram.

The decision from the Irish High Court will be legally binding following an appeal period of one month and the company will technically still be in the Examinership until the process of capital raise is finalised. Given that the court proceedings continue as planned, Norwegian’s goal is to finalise the capital raise by the end of May 2021. The process will also free the airline from having to pay everything it owes to former staff members that were made redundant when the airline decided to drop all long-haul routes and focus exclusively on domestic and European operations. 

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