Hard times for Norwegian

[directmisbi]

Dilution occurs when a company issues new shares that result in a decrease in existing stockholders' ownership percentage of that company. When the number of shares outstanding increases, each existing stockholder owns a smaller, or diluted, percentage of the company, making each share less valuable = Current shares falling in value
New shares for new investors will be valued around 6 kr pr share. Offering 3 times oversubscribed meaning strong demand over supply(new shares valued at a total value of 1 billion kr offered to the market, but investor demand was actually for 3 billion nok)

[vikingivesterled]

Originally Posted by Kirks gusset

One has to take the Kjos hype with a large pinch of salt, if the "offering" is so attractive and "oversubscribed" why are shares falling like love sick angels.

The current shares needs to fall a lot more. They are priced at 52 nkr and the new ones will be issued at about 6 nkr. After that existing shareholders will be left with only 5% of the total. So the new shares will cost the investors 6 each and there is a lot of headroom from there to 52. A leveling out at even just 8 would give a quick tidy profit. No wonder they are popular among Kjos monied friends. Then the entusiasts and amateurs buy in and will be the ones taking the pain when Norwegian again needs money. Some predicts this last event within 6 months if there isn't a decent summer recovery.
Some big name initial shareholders in Flyr did just that, a quick exit for profit, just a few days ago. Launced at 5, quick rice to 7, inital names sold and now down to 5.50.

[ManaAdaSystem]

23000 passengers will not get refunded, so not only crew suffering from this new and improved Norwegian. Kjos has a winning personality? Last I saw of him, it was an old, slightly incoherent man with anything but a winning personality. His concept failed pre covid. What would he bring except more of the same? And more whining about everybody else?

[Kirks gusset]

Shareholders

1. 3.1 The interests of the single class of Shareholders are impaired by the Proposals. This is because the Shareholders' shareholding will be diluted as a result of the issue of capital raise associated with the Proposals (detailed below) and the proposed conversion of liabilities of the Company into Shares. The Company estimates that the Shareholders' Existing Shares will be diluted to 4.6% of the total issued share capital in the Company on a Fully Diluted Basis. Shareholders can potentially mitigate the impact of the dilution by subscribing for new Shares pursuant to the proposed Rights Offering.
   

That's OK then you can buy more shares and loose even more!, unsecured creditors are taking a 95% hit and now even the people that supported the company by buying shares.Existing shareholders in Norwegian Air must agree to their holdings being reduced to a combined total of 4.6%.

And 17 classes of creditors, including 1,600 unsecured creditors and 34,000 customers seeking refunds, must agree at 17 separate meetings to receive just 5% of what they are owed plus a ‘pro rata’ share-out of a NOK 500 million (€50 million) ‘cash pot’.nly available

The "cash pot" is only available from new capital raising and creditors will still have to wait up to 3 years to get their pro-rata amount. The 34000 passenger refunds are an issue

[Paul737]

Talking with some crews from OSL, CPH and ARN today, it seems the plan for 2022 (70 aircrafts) could be like this:

- Norway: 40 aircrafts
- CPH: 8 aircrafts
​​​​​​- ARN: 8 aircrafts
- HEL: 6 aircrafts
- Spain: 6-8 aircrafts

[Kirks gusset]

Looks about right, the "plan" suggests a maximum of 50 Aircraft concentrating out of core Nordic operations, 70 is very optimistic as is Spain until mid 2022.

1. 3.32.1 focus on its core Nordics business, operating a European short-haul network with narrow body aircraft (the Group expects to initially hold up to 50 Boeing 737 aircraft (owned and leased));
   

As always the devil is in the detail: If you want to process a ticket refund claim:

1. The General Expert has estimated that it would take at least one hour of his chargeable time to determine the Unagreed Debt of a Customer Creditor with a single Ticket Refund Claim. Accordingly, for illustrative purposes only, such a Creditor may expect to be liable for a minimum of EUR 125 plus VAT per Ticket Refund Claim should it refer a Ticket Refund Claim to the General Expert under Clause 11.1.5.
   
   125 Euros "Expert" time to say your ticket claim is valid!
   

[jst17]

Back for another go!! Former founder of Norwegian, Bjørn Kjos, is eyeing taking another run at the low-cost long-haul market. In partnership with other investors and aviation industry personnel, he is seeking to launch Norse Atlantic Airways to fly from Europe to the Americas as soon as later this year.

[Skipness One Foxtrot]

https://newsroom.aviator.aero/norse-...-haul-airline/

April Fool has come early once again. Is this real?

[directmisbi]

No, Forbes is running a piece as well. New Norwegian will feed Norse Atlantic with pax? Kjos is investing in both projects, and the new airline are taking over the old 787 from Norwegian at half the price.



from dn.no(interview with Kjos)

Norse Atlantic will be an independent company. It is the right time to restart longhaul now, Kjos says to DN, and points to a new start after the corona when the vaccines become widespread.

Kjos joins the board, and wants a collaboration between Norwegian and the new company.

- We will definitely try to achieve that. The two companies have not had time to settle down with this, as Norwegian has been very busy with the reconstruction in Ireland, and Norse Atlantic with setting up long-distance. I believe that both companies can have great synergies. Several million passengers flew both long and short haul in Norwegian, and I hope that can continue, says Kjos.

flynorse.com

[sangiovese.]

I find it quite sickening that they can do this with how they treated their staff. Actually turns my stomach to see Kjos grinning face

[Kirks gusset]

According to the "press release" they raised 24m USD in investment.. just about enough to put lease deposits on 3 aircraft ! 12 half price! my Arse! but amusing way to start the week...

[Plastic787]

What’s the definition of insanity again?

[Chris2303]

Having anything to do with aviation?

[Una Due Tfc]

Primera, Wow, Laker, Tower Air, Norwegian......but this time low cost long haul will work.....

[Una Due Tfc]

And whats to stop IAG and Lufty from killing them (again) with Level, Eurowings etc this time? Madness.

[Kirks gusset]

Meanwhile back in LA La Land, NAS stock placed on the penalty bench as the rules regarding the securities issued where broken. Now the Board is urging the existing Bond Trustees to accept the forced changes, which they are not willing to do (at this time). Quite correct, you invest in a "Bond" as its meant to be a protected secure place come what may, not some instrument that can be constantly changed. Trust is what is lacking these days, no trust, no investment..

[directmisbi]

Remove LH from Norwegian in order to secure government funding

Erase debt and expensive pre-covid leasing agreements.

Secure Norwegian’s 787 complete with the old configuration but at a much better price

OSM survives(takeover the old employees from before)

Reinvest in Norse and New Norwegian.

Restart LH when convenient

Merge Norse and New Norwegian?

[Say Mach Number]

Any new start up in this day and age is a vanity project.

Look at me I own an airline.

These people need protecting from themselves.

[Less Hair]

Same guys, same routes, same aircraft, same concept.
What will work better financially next time?

[november.sierra]

Yes, many things are the same, BUT: looking at the proposed route network, it was only those LH routes that made money for Norwegian and the gang behind this project would know that. There is now a lower cost base through lower lease costs and no doubt lower staffing costs (OSM will take the opportunity to set lower T&C's of course...) The slots left behind by Virgin at LGW can be snapped up on the cheap, so why not. On top of that, I'm sure they've learned their lesson and won't cover aircraft maintenance downtime with Wamos etc as before, no doubt this downtime will be factored into any lease agreements including enough spare airframes on a 'power by the hour' agreement. Capitalism at its best quite simply