Originally Posted by
EIFFS
The money raised from the recent share offer was from core investors who are long term the second tranch to be approved on the 13th (today) is for investors not included in tranch 1 to ensure that they are treat equally.
This placing was to provide a buffer to ensure that Norwegian did not breech its banking covenants
I had missed the announcement that Norwegian would possibly breach their banking covenants. This is the first step for an already heavily-borrowed company in announcing they are running out of cash. For a public company, this has to be announced to the stock exchange. It also commonly means that upper management take their eye off the running and progress of the company's product, to all be focused every day on the spreadsheets showing how the cash (is) coming in, and (is not) going out.