The Norwegian government decided to extend funding to the reconstructed Norwegian airline but demands that private investors also contribute.
“Norwegian’s new business plan involves strong measures in the company’s debt structure and an inflow of NOK 4-5 billion in fresh capital.
“The plan appears more robust than the one we rejected in October. Therefore, we are now positive to contribute,” Minister of Trade and Industry Iselin Nybø (V) said.
Norwegian recently presented a new plan to ensure the company’s continued operations.
On January 10, the ministries received a new request from Norwegian for government participation in the company’s recapitalization.
“If Norwegian succeeds in their efforts, the government has said that we can contribute with a hybrid loan. The state has no ambitions to become an owner of Norwegian,” Nybø emphasized.
She did not state how large the loan could be, but she demanded that private investors contribute at least NOK 4.5 billion.
The state’s “yes” is an important milestone in the ongoing work to save Norwegian from bankruptcy.
The company has announced an extensive restructuring, where, among other things, its long-distance business will be closed down, in favor of a clearer focus on the European market.
Norwegian noted it was very satisfied with the government’s decision to contribute to the company’s raising of new capital.
This significantly increases the chances that Norwegian will get through the crisis and can continue to be an important player in Norwegian aviation, the company announced on Thursday morning.
“On behalf of all of us in Norwegian, I would like to thank the government. Norwegian is in a very demanding situation as a result of the pandemic.
“State participation significantly increases the chance that we will succeed in raising new capital and get through the reconstruction process,” Norwegian’s CEO Jacob Schram noted.
Source: #Norway Today, #NorwayTodayNews
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