Norwegian shareholders, lessors, and bondholders, unsurprisingly voted in favour of the deal for “New Norwegian”, which will see the airline come back, smaller and less ambitious in late 2021.
In the end the reality was they all stood to loose far more than they might possibly gain, although the long term prospects for the airline are from secure.
While its now able to access the government bailout to keep it ticking over until its ready to re-launch, the whole success of this is dependent on the ability and willingness of management to actually do what they’ve said they would do, not just breathe a sigh of relief and carry on as before.
On April 30th the whole deal was looking very shaky, as the bond holders were not willing to take on shares in a company they never wanted, but leasing companies, who see Norwegian as a vehicle to sell aircraft to, agreed to put up more money for shares than they were asked for.
The bond holders were again offered a deal over the weekend and 76% of them eventually accepted it.
Overall, by this morning 95% of votes for all items on the agenda were in favour of the airline continuing.
The airline will remain in 95% hibernation for all of this year and most of next, with full operations only recommencing for the summer 2022 season starting in March.