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2020-04-28

Norwegian Air slightly amends conversion plan terms after negotiations with bondholders

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Norwegian Air (NWC.OL), the budget carrier struggling to survive, has made some changes to the terms of its debt-to-equity conversion plan in response to bondholders' demands, it said on Tuesday.

On Monday, when creditors and shareholders give it a green light, the airline published the full details of a plan that can help it survive the coronavirus outbreak.

"The revised bondholders proposal is a reflection of the company's continued progress with its other stakeholders," Norwegian Air said in a statement.

The company would run out of cash by mid-May if the swap is not approved, Norwegian has said. It has grounded 95% of its fleet, leaving only seven planes in operation.

Among the changes, Norwegian Air proposes to convert 50 percent of the value of two of the bonds into shares, instead of 60 percent as proposed first, and 80 percent of the value of a third bond into shares, instead of 85 percent as proposed first.

Bondholders will vote Thursday on the proposals. If the terms are approved, the proposal will then be put to a shareholders vote on Monday.