Norwegian Air proposes restructuring, share sale in bid to survive

"The company asks for the continued support of its shareholders to prepare for future capital increases in parallel with the restructuring of its balance sheet," Norwegian said in a statement. Only six of the company's 140 aircraft are currently in use, while the remaining 134 are grounded due to the pandemic, including the company's entire fleet of Boeing 787 Dreamliners used for its suspended transatlantic flight programme.

Norwegian Air proposed on Thursday a package of debt conversion, aircraft divestment and sale of new equity in a bid to overcome the coronavirus pandemic that has brought the company to the brink of collapse.

As part of the plan, the Oslo-based carrier, which recently applied for bankruptcy protection in an Irish court, aims to raise up to 4 billion Norwegian crowns ($455.4 million) from the sale of new shares or hybrid instruments, it said. "The company asks for the continued support of its shareholders to prepare for future capital increases in parallel with the restructuring of its balance sheet," Norwegian said in a statement.

Only six of the company's 140 aircraft are currently in use, while the remaining 134 are grounded due to the pandemic, including the company's entire fleet of Boeing 787 Dreamliners used for its suspended transatlantic flight programme. A hearing at the Irish High Court, during which Norwegian will seek bankruptcy protection - called "examinership" in Ireland - is scheduled for Monday.

Norway's government last month rejected the airline's plea for another injection of state funds, and the company said a day after it was at risk of having to halt operations in early 2021 unless it got access to more cash.

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