What?! Norwegian Air will likely be out of cash in two weeks
According to Reuters, Norwegian Air will run out of money in a few weeks’ time. Bondholders turned down a proposed debt-to-equity swap, casting doubt on a plan that is vital to help the indebted airline survive the COVID-19 pandemic, although talks will still continue.
The carrier may run out of cash by mid-May unless its plan is approved by creditors and shareholders. It involves swapping up to $1.2 billion of debt into equity and hands over most of the ownership of the company to lessors and bondholders.
IMHO, Norwegian has been doing a great job as an airline, re-defining low-cost travel at really affordable fares, with good comfort on their (new) planes. Flying their 737s equipped with free wifi regionally, and 787s internationally is great compared to other (even non-lowcost) European airlines.
I really hope they can figure something out to avoid going bankrupt.
Read the full post here:
Norwegian Air bondholders reject debt plan in setback for survival hopes
OSLO (Reuters) – Norwegian Air’s () bondholders have turned down a proposed debt-to-equity swap, casting doubt on a plan that is vital to help the indebted airline survive the COVID-19 pandemic, although talks will still continue. The carrier may run out of cash by mid-May unless its plan is approved by creditors and shareholders.
