Norwegian Air Shuttle launches emergency rescue plan to save company

Norwegian Air Shuttle launched an emergency rescue plan on Thursday to save the struggling airline, unveiling proposals to downsize its fleet and raise new money from investors. It follows the filing for protection from creditors last month in Ireland under that country’s equivalent of Chapter 11 as it became aviation’s largest casualty of the pandemic. Norwegian’s fate was sealed when Norway’s centre-right government refused to offer a second bailout, triggering the latest proceedings. The company used Ireland to seek creditor protection as its subsidiaries there hold most of its aircraft.  The company’s shares have plunged 99% in the past year, wiping out shareholders, as the stock was briefly suspended. Norwegian’s board proposed “reconstructing” the airline's balance sheet by reducing the size of its fleet, launching a new debt-for-equity swap and a rights issue of up to NKr4bn ($453m) in the form of new stock or hybrid instruments. The debt-for-equity swap, which would be its second of the year, would include aircraft financing liabilities, supplier liabilities and bond obligations. As part of the proposals, Norwegian said it could also only pay aircraft lessors when it used their planes to help it conserve cash, a so-called “power by the hour” deal. <br/>