Icelandic ultra-LCC WOW Air has won approval from its bondholders to convert debt to equity following the recent collapse of talks with Icelandair, then Indigo Partners and then Icelandair again.
In a short notice to investors on March 26th, WOW said: “Bondholders have formally approved to convert their bonds into equity and formal discussions with investors have commenced to fund the company. This is an important milestone in financially restructuring the company and securing the long-term sustainability of WOW Air.”
Nothing was said about how much, who is still in control or what sort of funding is being provided. It leaves nobody really any the wiser, but it probably gives the airline six months – in aviation “long term” these days is anything over three months!