Norwegian Air slightly amends terms of conversion plan after talks with bondholders

Norwegian Air, the budget carrier that is fighting for its survival, has made some amendments to the terms of its debt-to-equity conversion plan in response to demands from bondholders, it said on Tuesday. On Monday the airline published the full details of a plan that may help it survive the coronavirus outbreak, if creditors and shareholders give it a green light.

"The revised proposal to the bondholders reflects that the company continues to make progress with its other stakeholders," Norwegian Air said in a statement. If the swap is not approved, Norwegian has said, the company would run out of cash by mid-May. It has grounded 95% of its fleet, leaving just seven aircraft in operation.

Among the changes, Norwegian Air proposes to convert 50% of the value of two of the bonds into shares, rather than 60% as first proposed, and 80% of the value of a third bond into shares, rather than 85% as first proposed. Bondholders will vote on the proposals on Thursday. If they approve the terms, the proposal is then put to a vote to shareholders on Monday.