– The company can thus proceed with the two-track process as planned, Norwegian writes in a stock exchange announcement.
Norwegian submitted the petition under the temporary reorganization law that applies until the new year. Lawyer Håvard Wiker has been appointed as reorganiser. The court will shortly appoint members of the creditors’ committee, who will assist the airline during the negotiations.
Norwegian is now trying to save the business through several channels. On Monday, it became known that Irish law has granted bankruptcy protection for two of Norwegian’s subsidiaries in Ireland.
In Tuesday’s ruling, the court points out that although the process in Ireland may be sufficient to make the airline viable, the lack of Norwegian rules on recognition of foreign insolvency proceedings means that Norwegian must open a parallel reconstruction in Norway.
Furthermore, the court considers that the process in Norway can be coordinated with the process in Ireland, as this will increase the probability of a successful result.
A reconstruction will be in the interest of all parties, as a bankruptcy will result in a completely insignificant dividend to the creditors, it is said.
67 billion in debt
According to the quarterly report from November, Norwegian’s debt is NOK 66.8 billion.
At the end of September, the airline had current assets of NOK 9.6 billion, of which NOK 3.4 billion in cash. The short-term debt then amounted to around NOK 16 billion.
“Based on current known cost cuts, it is estimated that the company will run out of cash during the first half of next year,” writes judge Leif Villars-Dahl. After an overall assessment, the court finds that it is probable that the airline will be able to reach an agreement on reconstruction with its creditors.
The ruling from the town bailiff’s office cannot be appealed.