Norwegian Air will get $271 million state-backed mortgage after debt restructuring

FILE PHOTO: Passengers board a Norwegian Air airplane in Kirkenes, Norway October 26, 2019. REUTERS/Gwladys Fouche/File Picture

OSLO (Reuters) – Price range airline Norwegian Air (NWC.OL) has secured a long-sought credit score assure from Norway’s authorities after finishing a debt restructuring, it stated on Wednesday, permitting it to outlive in a slimmed-down model.

Following the grounding of virtually all its fleet as a result of coronavirus pandemic, the corporate had stated it will run out of money in mid-Might except it was in a position to qualify for the two.7 billion Norwegian crowns ($271 million) state package deal.

The federal government in a separate assertion confirmed the airline would get the assure. Norwegian had already secured a $30 million payout at an earlier stage, taking the general mortgage to $301 million.

Bondholders, lessors and shareholders agreed in current weeks to a 12.7 billion crowns debt conversion and share sale that boosted Norwegian’s fairness ratio to 17% from 4.8% at end-2019, exceeding the minimal authorities requirement of 8%.

($1 = 9.9751 Norwegian crowns)

Reporting by Terje Solsvik, enhancing by Louise Heavens

Our Requirements:The Thomson Reuters Belief Ideas.

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