Transportation • Air Transportation & Traffic, Flying

Norwegian Air bondholders reject debt plan, and company may run out of cash by mid-May.

Although talks will still continue, Norwegian Air’s bondholders have turned down a proposed debt-to-equity swap, casting doubt on a plan that is vital to help the airline survive the Covid-19 pandemic.

The company may run out of cash by mid-May unless its plan is quickly approved by creditors and shareholders.

This plan involves swapping up to $1.2 billion of debt into equity and hands over most of the ownership of the company to lessors and bondholders.

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