In reality the "old structure" dies and the value of the shares dies with it, so selling any old shares is not possible, who's going to buy shares in a structure that no longer exists? The shares are already under observation for OSLO trading and forecast is worth zero, so forget raising money by selling old shares.
The existing "creditors" may also be share holders, however their historical debt was converted to shares in May and it could be seen the slate was wiped clean with that transaction, the "new debt" has accrued since May and is on-going with contractual obligations, wages, overheads etc, and it is this "new debt" that balanced with the available income and cash reserves puts the existing company in insolvency.
The examinership process is solely designed to protect the company from its creditors for the period 100 days, during which a feasible and sustainable business plan must be made, or the company is declared bankrupt.
Of course the shareholders will vote for restructuring, they have little choice, but the hat they wear as "creditors", means that for the process to be approved by the court with a successful exit they will get more in real terms than if the company is dissolved and the assets sold.
One must remember that the primary role of the Examinership is to protect employees.
Examinership, it’s Ireland’s rescue framework for, you know, otherwise viable companies that find themselves in difficulty, but they have good, good prospects for survival if they can be restructured.
In fact, the test actually is only a reasonable prospect of survival and subject to certain conditions that if they can restructure themselves, they can still be there for the for the benefit, particularly of the employees, which is why the legislation was introduced in 1990. And secondly, then for the benefit of the community as a whole, that, you know, that the enlightened approach is that businesses should have a second chance, should be given a second chance if they are if they can be viable, if they’re restructured. So that’s what that’s what Examinership is.
For this process to be approved REAL INVESTMENT must be forthcoming, not vacuous promises and more importantly, the "investment must be received" , this is where they will struggle unless the shareholders are prepared to actually put in cash. Trading revenues from sales is not investment.
Cityjet creditors agreed to
write off 75% of their debts and the company received sufficient external investment cash to continue.
A slimmed down Norwegian with the new management may well be an attractive investment, lets see who comes out of the woodwork on this. Pity Braathen has hovered up some potential sources