Crisis-stricken Norwegian airline presented its final rescue plan on Thursday. From it, it appears that 34,000 customers who have claims against the company will not receive full refunds.
“From the company’s side, we wanted to refund the customers completely, and we regret that it will not be possible,” CFO Geir Karlsen said in a press release on Thursday morning.
Norwegian is currently in a restructuring process where they hope to reach an agreement with their creditors to ensure further operations.
Negotiations are underway both in Norway and in Ireland, where several of Norwegian’s companies are registered.
In the report, the company writes that they “had sought to find good solutions for a small proportion of customers who had not received a refund from the time before the Irish reconstruction process was initiated, on November 18, 2020”.
Many will not receive full refunds
“Around 98% of the refund claims that arose during this period, where the booking was made directly with Norwegian, were refunded before the opening of the reorganization negotiations. In Norway, this applies to almost all customers, 99.6%,” the company writes.
A total of 34,000 customers will not receive a full refund.
According to Norwegian, they have had to treat these customers in the same way as other unsecured creditors due to the legislation.
If the new rescue plan presented by Norwegian on Thursday is approved, the company will be able to continue the reconstruction and implement capital raising starting in April and with a goal of completion in May 2021.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance
Do you have a news tip for Norway Today? We want to hear it. Get in touch at email@example.com