Norwegian Air Enters Reorganization Plan With Subsidiaries Under Irish Examinership
After the Norwegian Government refused further financial support for the airline, they have initiated the reorganization process with subsidiaries Norwegian Air International and Arctic Aviation Assets for protection under Irish Examinership.
On Wednesday (November 18, 2020), Norwegian Air Shuttle ASA (Norwegian) announced that following the decision by the Norwegian government to withhold further financial support, they have entered a reorganization process under Irish Examinership. The reorganization will include the carrier’s subsidiary Norwegian Air International Limited (NAI) as well as their wholly-owned asset company Arctic Aviation Assets DAC (AAA) and some of its subsidiaries. Norwegian Air will also enter Irish Examinership as a related party. The company believes this course of action is in the best interest of stakeholders and has selected reorganization in Ireland because their aircraft assets are held there. In Wednesday’s announcement, Norwegian’s CEO, Jacob Schram, said,
“Seeking protection to reorganize under Irish law is a decision that we have taken to secure the future of Norwegian for the benefit of our employees, customers, and investors. Our aim is to find solutions with our stakeholders that will allow us to emerge as a financially stronger and secure airline. Our intent is clear. We will emerge from this process as a more financially secure and competitive airline, with a new financial structure, a rightsized fleet, and improved customer offering.”
Norwegian expects the reorganization process to take up to five months and, in the meantime, will continue to operate their limited route network. Shares in the company will continue to trade as normal on the Oslo Stock Exchange and the Norwegian Reward loyalty program will remain unchanged. The examinership reorganization process in Ireland is equivalent to Administration (in the UK and elsewhere) or Chapter 11 Bankruptcy reorganization in the U.S. Through a court-appointed examiner, the process allows financially sustainable businesses to restructure, shed and/or settle debts, while securing new capital for ongoing operations. Norwegian believes they have sufficient liquidity to successfully move through the examinership process.
Source: Norwegian Air Shuttle ASA