Norwegian Air shareholders back GBP770m rescue plan

Norwegian Air will proceed with its rescue plan and unlock government aid after winning support from shareholders, bondholders and aircraft lessors for a 10b kroner (GBP770m) debt-for-equity swap. After a weekend of frantic talks, the airline’s shareholders gathered at an emergency meeting in Oslo on Monday and voted 95% in favour of all proposals, including a 400m kroner share issue – even though the plan effectively wipes them out. The plan will hand majority ownership to the airline’s creditors – bondholders and lessors – and leave shareholders with 5.2% of the company but there was no alternative, Norwegian’s CE, Jacob Schram, said. Without the rescue plan, “it will be game over”, he had warned ahead of the shareholder meeting. “This has been perhaps the most exciting financial thriller Norway has ever seen,” he said after the meeting. The plan will unlock a further 2.7b kroner in state aid to help steer the airline through the coronavirus crisis, on top of 300m kroner the airline has already received. Norway’s government made the package dependent on Norwegian making itself solvent again by wiping out its debt. <br/>