Norwegian Air restructuring plan approved in Irish court
Norwegian Air today saw its restructuring plan approved in Irish court, clearing the way for the embattled airline to come out of bankruptcy protection.
Under the plan, the carrier will cut its fleet back to 50 planes and stop long-haul services, cutting 2,000 jobs in the process.
Speaking in the Irish High Court today, Justice Michael Quinn said: “I have decided that it is appropriate to confirm the proposals of the examiner.
“I am persuaded by the evidence of the examiner that these proposals can facilitate the survival of the companies as a going concern.”
The decision takes the carrier another step closer to survival, which looked unlikely back in the autumn when Norway’s government declined to give the carrier more help.
However, when presented with the restructuring plan in January, ministers said that they would support the carrier in helping raise fresh capital.
Alongside the changes to its flying schedules, Norwegian is planning to cut its hefty debt pile to 20bn krone (£1.7bn), and raise 4-5bn krone in new cash.
Chief executive Jacob Schram said: “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.
“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.”