Norwegian Air raises fresh capital, set to exit restructuring

Norwegian Air is set to exit its restructuring process next week after raising the 6b Norwegian crowns ($714m) it targeted through the sale of perpetual bonds, new shares and a rights issue, the company said Friday. Financed largely by debt, Norwegian Air grew rapidly, serving routes across Europe and flying to North and South America, Southeast Asia and the Middle East before the COVID-19 pandemic plunged the budget airline into crisis. Courts in Ireland and Norway had demanded the airline raise at least 4.5b crowns as part of a scheme to emerge from bankruptcy protection in the two countries on May 26. The private placement of new shares raised 3.73b crowns and was "significantly oversubscribed", the firm said. The perpetual bond sale added 1.88b crowns from current creditors, while the rights issue to existing shareholders was oversubscribed and the final results are to be settled on May 25, the company said. The courts in Oslo and Dublin last month gave their approval for Norwegian to sharply cut its debt by converting it to stock so long as it raised the 4.5b crowns. With the pandemic still curbing travel, the company then decided to try and raise an additional 1.5b crowns to bolster resources as it exits the restructuring process it began last December. The survival plan brings an end to Norwegian's long-haul business, leaving a slimmed-down carrier focusing on Nordic and European routes.<br/>