Compensation plan for tourism of up to NOK 1 billion

The government is introducing a compensation plan of up to NOK 1 billion for tourism companies. In addition, they will provide NOK 250 million for restructuring.

On Monday 21 September, the government will present new proposals for relief measures for industries that are acutely affected by the authorities’ corona measures. Tourism is among the industries hardest hit by infection control measures and travel restrictions.

The situation in tourism is very challenging, and it will continue to be so in the future. The government will therefore introduce a new compensation scheme for tourism companies with a large drop in turnover of …

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Norwegians shareholders agree to the crisis plan

An overwhelming majority of Norwegians’ shareholders have voted in favor of the group management’s rescue plan, which will prevent the company from going bankrupt.

The vast majority of shareholders voted in Monday’s extraordinary general meeting, yes, on all the important points in the rescue plan, reports Dagens Næringsliv.

The goal of the plan for CEO Jacob Schram and the Board of Directors of the company is to gain access to a government crisis loan of NOK 2.7 billion.

Through long negotiations in the last few days, the company managed to bring both bondholders, leasing companies and thus shareholders on board …

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Government’s tardiness threatens thousands of jobs and payouts to over one million travelers

More than three weeks ago, the travel industry association SRF submitted a concrete proposal to the government on a support fund to handle refunds to travelers for canceled trips. The fund finances itself through future fees and thus does not burden the taxpayers. “Unless the government announces soon, thousands of jobs will disappear while consumers risk losing their money,” said Didrik von Seth, secretary general of SRF in a press release.

The corona virus outbreak and the Foreign Ministry’s recommendation for restrictions on all travel make the travel industry completely silent. An entire industry that normally generates billions today has …

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Scandic closes 17 of 27 Danish hotels

Scandic is temporarily shutting down 17 of its 27 hotels in Denmark. For now, the closures are in effect until after Easter.

Scandic Hotels are temporarily shutting down 17 of its 27 hotels. The closures are a consequence of the COVID-19 epidemic and are valid until 14 April.

The hotel chain has so far laid off 650 employees on the basis of the previously concluded agreement between Dansk Erhverv and 3F, which is valid until March 29. After this date, the laid off employees will transition to the new tripartite wage compensation agreement. Scandic estimates that an additional 600 employees …

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TUI signs German bridge loan

KFW and TUI AG confirm the signing of a € 1.8 billion government bridge loan. The loan is guaranteed by the German federal government as part of their Covid-19 support program.

TUI’s current credit facility, the RCF Bank Consortium, supports the KFW loan and adds EUR 1.8 billion to TUI’s existing credit line.

Following the introduction of the international travel restrictions, TUI decided to apply for the KFW loan to mitigate the severe effects of the pandemic until normal business operations can be resumed. Like others, TUI had to temporarily suspend its tour operator business, as well as its flight, …

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Norwegian will convert debt into equity

The Norwegian Board of Directors will, through a number of measures, strengthen the company’s balance sheet and fulfill the Norwegian authorities’ terms in Trades Two and Three of the Government’s loan guarantee scheme.

The Board of Directors proposes that debt be converted to equity by entering into agreements with, among other things, bondholders, lenders, leasing companies and suppliers.

The proposals include:

• Parts of the debt of leasing companies, banks and other creditors are sought to be converted into shares in Norwegian.

• Use of other financial instruments to convert other relevant debt to equity or other equity instruments.

• All or part

…

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