Norwegian is poised to unlock a vital £230m condition bailout immediately after traders backed a painful restructuring of the airline’s finances.
Shareholders permitted options on Monday for creditors and aircraft leasing companies to swap money owed of more than 10bn crowns (£770m) for shares in the carrier.
The debt-for-fairness swap was important for Norwegian to obtain federal government support from Oslo immediately after operations have been brought to a near standstill by the coronavirus pandemic.
Norwegian, the third-largest airline at Gatwick airport, was remaining notably exposed by the world-wide unexpected emergency, possessing racked up money owed of more than £6bn to gas a remarkable enlargement programme in the latest many years.
The shareholder backing came immediately after a sequence of impassioned pleas by the airline’s founder and former main executive Bjorn Kjos.
Domestic media reported that he managed to improve the minds of numerous teams of traders who feared the structuring, which will pretty much entirely wipe out its fairness benefit, would depart the airline in overseas fingers.
Shareholders will be remaining with minimal more than 5pc of the corporation immediately after the restructuring but will have the opportunity to participate in a £30m legal rights situation scheduled to acquire place on May well eleven.