OSLO (1) – Norway’s parliament voted by means of a new firm restructuring law on Friday that could help save Norwegian Air (NWC.OL) and lots of different firms from potential chapter because of the restrictions to stem the unfold of COVID-19.
FILE PHOTO: A Norwegian Air aircraft is refuelled at Oslo Gardermoen airport, Norway November 7, 2019. REUTERS/Lefteris Karagiannopoulos
The laws replaces present regulation on debt negotiations and relaxes guidelines for changing debt into fairness.
“(The new law) is a extra environment friendly instrument to … kind out what components of a enterprise might be sturdy sufficient to outlive,” Justice Minster Monica Maeland informed parliament.
Her feedback weren’t aimed toward any particular companies, however finances provider Norwegian Air is amongst these more likely to profit, mentioned Kristoffer Aaseboe, a lawyer at Oslo-based law agency Bull & Co.
“This non permanent restructuring law will improve the probability to get restructurings in place,” Aaseboe, who specialises in insolvency and reconstruction, informed 1.
The airline is in search of to transform debt to fairness to qualify for state ensures in a bid to outlive the coronavirus disaster, which has grounded all however a handful of its almost 160 plane.
The law will imply solely 50% of the debtors and 50% of shareholders should conform to an answer, which is much less strict than beneath the present law, Bull & Co lawyer Klemet Gaski mentioned.
Norwegian Air this week mentioned 4 of its Swedish and Danish subsidiaries had filed for chapter and that it had ended staffing contracts in Europe and the USA, placing some 4,700 jobs in danger.
The corporate nonetheless goals to emerge from the disaster, and can maintain conferences of bondholders and shareholders forward of a vote on its proposed plan on Might 4.
Norwegian Air declined to touch upon Friday.
Modifying by Terje Solsvik;Modifying by Elaine Hardcastle