Two Norwegian Norwegian companies are applying for bankruptcy protection – E24


The Norwegian subsidiaries for pilots and cabin crew in the airline have asked Asker and Bærum District Court to open reconstruction negotiations.

Gorm Kallestad / NTB
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The two companies that are now included in the reorganization negotiations are Norwegian Pilot Services Norway and Norwegian Cabin Services Norway, both of which are wholly owned by Norwegian, the company writes in a press release.

– The goal of the reorganization process is to emerge from the crisis as a stronger company with reduced debt. The boards of the two subsidiaries have seen it as expedient that they have the same protection as the parent company, says Norwegian CEO Jacob Schram in the report.

The company emphasizes that the news does not affect the terms of employment of employees, and that salaries and other conditions run as normal. Nor does it affect the layoffs the companies have made.

The operation of the airline will also continue as normal.

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Leasing company positive

The news comes at the same time as a hearing is being held in the Irish court in the case related to the bankruptcy protection in the country.

It has emerged that the leasing company Aercap is now not protesting the restructuring proposal. Lawyer Rossa Fanning, who represents the leasing company, emphasized that it still has objections.

– Our objections are more about the order, not the substance, Fanning said.

“Advanced negotiations” are now also underway with several players, Norwegian’s lawyer Brian Kennedy was able to reveal.

One of these lenders is Rolls-Royce. The aircraft engine manufacturer’s lawyer Jon Breslin stated that there was good progress in the negotiations, and that they “can reach an agreement” during the day today, Tuesday.

The aircraft manufacturer Airbus is also approaching an agreement with Norwegian. This agreement may be in place for a new court hearing on Wednesday, according to Kennedy.

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Norwegian upgrades the creditor journey for Iselin Nybø

Changed offer

Just before the weekend, Norwegian made a final offer, in which the conditions for the so-called hybrid loan were raised.

In an earlier proposal, all creditors who invest in the hybrid loan were promised 150 percent of the amount in the form of a six-year interest-free loan. In the latest offer, this sum has now been increased to 200 percent.

As E24 wrote on Monday, this means that the Norwegian state can now save all the three billion kroner that was given in state guarantees in 2020. Minister of Trade and Industry Iselin Nybø has previously received support from the Storting to add NOK 1.5 billion to the hybrid loan.

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