Irish court extends Norwegian creditor protection after carrier receives state backing
The Irish High Court has this morning extended Norwegian Air’s creditor protection until 25 February.
The court granted the extension after the examiner said that the airline had a reasonable prospect of survival.
The decision comes after the Norwegian government said yesterday that it would back the airline’s new restructuring plan.
Norwegian is planning to cut its hefty debt pile to 20bn krone (£1.7bn), and raise 4-5bn krone in new cash.
Industry Minister Iselin Nyboe said that the government’s participation would hinge on whether private investors also put money in.
“The plan appears more robust than the one we rejected last October and we are therefore inclined to contribute,” she said.
The carrier sought bankruptcy protection in both Norwegian and Irish court in November after the government rejected a previous bid for extra support.
Under the new restructuring plan, it will cut its long-haul network altogether, and reduce its fleet to just 50 planes.
This will lead to 2,000 staff being laid off in total, including 1,100 in the UK.