Hard times for Norwegian
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I read the leasing companies as part of the deal have voting rights. I presume this means seats at the top table and not just ordinary share voting rights. In that case it won't be a pleasant few years as the leasing companies claw back all that is owed plus interest before exiting.
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After all the new shares is added there will be 3 billion shares in circulation and that price would give a valuation of above 500 million pounds.
I doubt it would be much less in the accounts. They did convert approximately that amount of debt to capital and they haven't spent the 300 million government loan yet.
Even if the share price goes down to the expected 1 nkr a share it would still be valued well above 250 million pound.
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I read the leasing companies as part of the deal have voting rights. I presume this means seats at the top table and not just ordinary share voting rights. In that case it won't be a pleasant few years as the leasing companies claw back all that is owed plus interest before exiting.
Last edited by uncle-traveling-matt; 21st May 2020 at 07:59.
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" I read the leasing companies as part of the deal have voting rights. I presume this means seats at the top table and not just ordinary share voting rights. In that case it won't be a pleasant few years as the leasing companies claw back all that is owed plus interest before exiting"
Quote: "Norwegian’s CEO Jacob Schram said the restructuring gives the airline a platform to continue, but pointed out the challenges ahead: “The months ahead will remain challenging and with a high degree of uncertainty for the industry. Norwegian will still need to collaborate closely with a number of creditors as the Company currently has limited revenues.” "
That limited revenue looks set to continue for many months. Prior to the restructure, Schram announced the company would be operating in “hibernation mode” for the remainder of 2020, and that full operations would not resume until 2022.
The writing is already on the wall, unless there is a huge cash injection the company will probably go bust and the Chinese will take the aircraft as the US/China trade wars have slowed orders up, this would suit both BOC Aviation and AerCap.
Writing off the debts was Hobson's choice and by now the old creditors (now shareholders) have come to terms with the fact they are caught with their trousers around their ankles.
Quote: "Norwegian’s CEO Jacob Schram said the restructuring gives the airline a platform to continue, but pointed out the challenges ahead: “The months ahead will remain challenging and with a high degree of uncertainty for the industry. Norwegian will still need to collaborate closely with a number of creditors as the Company currently has limited revenues.” "
That limited revenue looks set to continue for many months. Prior to the restructure, Schram announced the company would be operating in “hibernation mode” for the remainder of 2020, and that full operations would not resume until 2022.
The writing is already on the wall, unless there is a huge cash injection the company will probably go bust and the Chinese will take the aircraft as the US/China trade wars have slowed orders up, this would suit both BOC Aviation and AerCap.
Writing off the debts was Hobson's choice and by now the old creditors (now shareholders) have come to terms with the fact they are caught with their trousers around their ankles.
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https://www.aa.com.tr/en/asia-pacifi...n-air-/1847944
Didnt see that coming! Why would a Chinese company (and ultimately the Chinese government) be interested in a struggling Western airline? Or is this standard practice?
Didnt see that coming! Why would a Chinese company (and ultimately the Chinese government) be interested in a struggling Western airline? Or is this standard practice?
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https://www.aa.com.tr/en/asia-pacifi...n-air-/1847944
Didnt see that coming! Why would a Chinese company (and ultimately the Chinese government) be interested in a struggling Western airline? Or is this standard practice?
Didnt see that coming! Why would a Chinese company (and ultimately the Chinese government) be interested in a struggling Western airline? Or is this standard practice?
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Probably behind the drag curve, apologies, but yesterday's National Newspaper business section Headline was "Norwegian Air Saved after GBP221m bailout." Er, "saved" is explained as "The budget airline will now go into hibernation for a year, cutting staff,grounding or returning most of its fleet and only flying between Scandanavian countries". Cripes, is that "saving" ?
Only an airframe driver , I admit, but , all this swopping of debt for equity leaves me very cold. A bit like equity release on my house , I guess, a bit , eh ? But accountant yuck speak for a very grim outlook I venture to suggest.
Selling 400m new shares at 8p each. I Should have taken a punt with money I saved during lock-down...........but.................you know............?
Only an airframe driver , I admit, but , all this swopping of debt for equity leaves me very cold. A bit like equity release on my house , I guess, a bit , eh ? But accountant yuck speak for a very grim outlook I venture to suggest.
Selling 400m new shares at 8p each. I Should have taken a punt with money I saved during lock-down...........but.................you know............?
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Hats off for trying SELPA, however since the "share deal" the company has no real assets and no spare cash and it's a bit difficult to see what can be gained from this challenge other than being a inconvenient pain in the arse.
I'm sure it's been ventilated before, but if the union felt the transfer was illegal why didn't they take action at the time? and if the company had been doing well, would they have bothered at all.
More effective action may be gained from refusing to handle any NAS aircraft in Spain, surely the airport staff will side with SELPA?
Notwithstanding the above, its still a crap deal for the crews, and some are still in denial of their fate...
I'm sure it's been ventilated before, but if the union felt the transfer was illegal why didn't they take action at the time? and if the company had been doing well, would they have bothered at all.
More effective action may be gained from refusing to handle any NAS aircraft in Spain, surely the airport staff will side with SELPA?
Notwithstanding the above, its still a crap deal for the crews, and some are still in denial of their fate...
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And if Norwegian do decide to bring their aircraft out of hibernation at short notice, and they’ve managed to hack off all the crew, how easy and quick will it be to recruit and train newbies whilst the other airlines are primed and ready to go?
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SEPLA is not "trying". They“re actually taking action and following the legal course. The mediation is just a legal requirement in order for them to go to court and nobody expected anything from that 20 minute meeting. This is not about the company having "spare cash to be cute". This is about norwegian following the law as any other airline is, and not getting rid of crews as if they were used toners.
Of course no court action would be taking place if the "company had being doing well". Because until now, the company had been behaving iaw the law. But now that they have "abandoned" their crews in Spain as if they didn“t know them, is when that behaviour can be challenged in court. And not before.
Lastly, this is not about crews going thru "denial of their fate". This is about defending their rights and following the law. And the law in Spain states for procedures and financial compensation when getting rid of permanent employees. Again, like any other enterprise, whether an airline or a beauty salon.
And of course norwegian has assets. And cash as well. How in the world would they be alive otherwise...
This is not about being an "inconvenient pain in the arse". This is about norwegian taking social responsibility, it“s about respect and protection to their staff that has been supporting their business for years, and for them to play a fair game like any other carrier in the civilised world. And trust me, this will be achieved for the good of everyone, and most particularly for norwegian itself. Just give it some time.
Of course no court action would be taking place if the "company had being doing well". Because until now, the company had been behaving iaw the law. But now that they have "abandoned" their crews in Spain as if they didn“t know them, is when that behaviour can be challenged in court. And not before.
Lastly, this is not about crews going thru "denial of their fate". This is about defending their rights and following the law. And the law in Spain states for procedures and financial compensation when getting rid of permanent employees. Again, like any other enterprise, whether an airline or a beauty salon.
And of course norwegian has assets. And cash as well. How in the world would they be alive otherwise...
This is not about being an "inconvenient pain in the arse". This is about norwegian taking social responsibility, it“s about respect and protection to their staff that has been supporting their business for years, and for them to play a fair game like any other carrier in the civilised world. And trust me, this will be achieved for the good of everyone, and most particularly for norwegian itself. Just give it some time.
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No point fighting with the rocket-sofa-pilots who love to see others get screwed by the comment "denial of their fate" as if it was enjoying writing that... probably he can't get much joy of life anyways. Pprune is full of these ones!
We will stay on course in life and keep our head high! Still a lot of water to run under the bridge...very old saying and very true.
We will stay on course in life and keep our head high! Still a lot of water to run under the bridge...very old saying and very true.
