Norwegian Air files for protection from bankruptcy

Norwegian Air files for protection from bankruptcy
Budget Carrier Said one Statement Wednesday that he has decided to file for tester in Ireland, where his aircraft assets are housed. Examship allows companies to take court protection from creditors for up to 100 days, and that is tantamount to Chapter 11 bankruptcy in the United States.

“The purpose of this process is to reduce debt, entitle the fleet and secure new capital,” Norwegian Air said. The process is expected to take five months, he added.

“Seeking protection to reorganize under Irish law is a decision we have made to secure the future of Norwegians for the benefit of our employees, customers and investors,” said CEO Jacob Shram. “Our aim is to find compromises with our stakeholders that could make us an economically strong and secure airline.”

Norwegian Norwegian Air was founded in 1993 and began rapid expansion nearly a decade ago, seeking to implement the business model initiated by Transylvania for transatlantic flights in Europe and the Southwest in the United States. But the aggressive strategy left him with heavy debts, and little room for maneuver when things went wrong.

Norwegian Air Said on Wednesday It will continue to operate its root network, which is severely limited as a result of the coronavirus, and its shares will trade as usual on the Oslo Stock Exchange. The stock has lost more than 98% of its value this year.

The carrier warned last week that it would need more cash for work in the first quarter of next year and beyond. That Received A state-sponsored loan of 3 billion Norwegian kroner (28 288.7 million) in May, but the country’s government has ruled to provide more financial aid – a decision Labor described as a “slap in the face.”

The airline carried just 1 million passengers in the third quarter, up from 10.5 million in the same period last year. Its quarterly operating loss was 2.8 billion kroner (10,310 million), while cash and cash equivalents fell to just 3.4 billion kroner ((6 million) at the end of September.

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– Charles Riley contributed to this report.


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