Norwegian Air's bondholders back debt relief plan

Norwegian Air's bondholders have accepted the company's plea to postpone repayment of $380 million by up to two years, the carrier said on Monday, providing the loss-making airline some financial relief.

In return, Norwegian has promised to pay a premium on the bonds while also pledging lucrative take-off and landing slots at London's Gatwick Airport as security. "We're pleased with the bondholders' decision to amend the bonds as it will give us added financial headroom going forward," acting CEO Geir Karlsen said in a statement.

Norwegian Air remains on track to cut costs by 2 billion Norwegian crowns ($223 million) in 2019, he added. To alter the terms, two-thirds of bondholders at a meeting in Oslo had to back the proposal. In the end, 89.8% of owners of the NAS07 bond gave their consent, while support for the NAS08 bond stood at 99.64%.

Norwegian Air had said on Sept. 11 that preliminary indications showed that enough bondholders would accept the measures. ($1 = 8.9752 Norwegian crowns)

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