Norwegian share price plummets on debt conversion plan

Norwegian saw its share price nosedive when markets opened Tuesday following its April 8 proposal to convert debt to equity in order to qualify for state aid. Shortly after the Oslo stock exchange reopened following the long Easter weekend, Norwegian’s share price was at one point down more than 60% compared with when the market closed April 8. This was the first indication of investor appetite for the airline since it announced plans for bondholders, lessors and other creditors to become equity holders in the company by converting “substantial” debt to equity. The carrier’s CE, Jacob Schram, said the proposed measures were necessary to secure “the next tranches of the Norwegian govt state guarantee programme”. <br/>