Norwegian Air Shuttle ASA – Results from the bondholders’ meetings
Nordic Trustee AS has informed Norwegian Air Shuttle ASA (“the Company”) about the results from bondholders’ meetings (see attachment below). The Company is pleased to see very robust support from 3 out of 4 bondholder groups, approving the Company´s proposals. The proposal to NAS07 did, however, not receive sufficient support with a vote in favour of 62% (2/3 required). The Company is however continuing a constructive dialogue with bondholders to assess whether the required majority for approval of the proposal can be reached. The Company has furthermore received strong support from lessors for a minimum conversion to equity of 550 million USD (excluding conversion under the so-called power-by-the-hour arrangement), which would satisfy the condition set out in the proposal to the bondholders. The Company’s scheduled extraordinary general meeting will be conducted as planned on Monday 4 May 2020. The Company intends to summon a new bondholder meeting planned to be held on Monday 18 May 2020. The Company will on Monday 4 May 2020 determine the timeline for the capital raise, which will end on or about 18 May 2020. “Our dialogue with the bondholders continues with the clear goal of reaching a solution. Unfortunately, we were not able to reach an agreement within the deadline. However, the discussion is continuing through the weekend to find a solution, said CEO Jacob Schram of Norwegian. Fornebu, 1 May 2020
https://newsweb.oslobors.no/message/504439 contains a link to the shareholders notes
The press release 2nd September 2019: (in other words they already knew they would run out of cash). Unfortunately the Gatwick Slots do not have the values anywhere near those before Covid, perhaps only 30% of what they were worth.
Norwegian’s Gatwick portfolio currently consists of take-off and landing slots which has an independent valuation from a well-reputed third-party in excess of the current nominal bond value for NAS07 and NAS08 of USD 380 million. These are important operational rights for the Norwegian Group, facilitating the feeding of passengers between our European short-haul network and intercontinental long-haul network, an important part of Norwegian’s profitability strategy going forward. Previous transactions in the market demonstrate the ability to monetize on slots at Gatwick.