Norway court approves Norwegian Air reconstruction application
Last month, the carrier reported a third quarter net loss of 980 million kroner (108 million dollars), as the coronavirus pandemic caused a sharp drop in demand for air travel.
Norway-based budget airline Norwegian Air's application for reconstruction under Norwegian law has been granted, a Norwegian court said on Tuesday.
The decision was announced the day after an Irish court gave similar approval.
The two processes were to run in parallel, the airline said.
"A supplementary reconstruction process under Norwegian law will be to the benefit of all parties and will increase the likelihood of a successful result," chief executive Jacob Schram said in a comment.
Schram said the airline would focus on "reducing company debt, reducing the size of our aircraft fleet, and ensuring that we are a company that investors will find attractive."
According to the Oslo County Court statement, the airline owes creditors an estimated 66.8 billion kroner (7.6 billion dollars).
Sale of new shares
The company has an extraordinary general meeting scheduled on December 17 to approve a plan to raise funds from the sale of new shares.
Last month, the carrier reported a third quarter net loss of 980 million kroner (108 million dollars), as the coronavirus pandemic caused a sharp drop in demand for air travel.
Revenue slumped by more than 90% year-on-year to 1.28 billion kroner.
The airline is currently operating with a skeleton staff of some 600 employees. The pre-pandemic workforce numbered around 10,000 employees.