Norwegian Air gets additional creditor protection to deal with debt

Norwegian Air was given additional creditor protection by a court in Norway on Tuesday on top of that granted by an Irish judge on Monday, allowing the cash-strapped airline’s restructuring efforts to continue. “A supplementary reconstruction process under Norwegian law will be to the benefit of all parties and will increase the likelihood of a successful result,” CE Jacob Schram said. Norwegian said it could now move forward with the dual-track process. The company, which helped transform transatlantic travel, expanding the European budget airline business model to longer-haul destinations, has been forced to ground all but six of its 140 aircraft amid the COVID-19 pandemic. If successful in convincing creditors and owners of its future potential, Norwegian could, with the help of the courts, emerge as a smaller but more efficient carrier with fewer aircraft, less debt and more equity. “Our aim is to secure jobs in the company and to contribute to securing critical infrastructure and value creation in Norway,” Schram said. The airline, which has said it could run out of cash by the end of Q1 of next year, aims to complete the debt restructuring by Feb. 26.<br/>