Norwegian presents final reconstruction plan to shareholders and creditors.

Low-cost airline Norwegian presented Thursday to shareholders and creditors its final financial reconstruction plan that, if approved by the courts, would allow the company to start a capital increase in April.

Creditors who do not participate in the increase will be entitled to cash and a dividend of around 5%, convertible into shares, according to the latest proposal, linked to a double reconstruction process in Ireland and Norwegian, according to a statement.

See also: Norwegian retires all 737 MAXs from its fleet.

“We have had constructive and complicated negotiations with creditors since the plan was submitted on January 14. The rebuilders in Ireland and Norway believe the plan is in the best interest of creditors and shareholders. It is a milestone in the process of securing Norwegian’s future,” said CEO Jacob Schram.

The Norwegian airline highlights that 98% of the claims for flights booked directly with the company, and filed before it went into reconstruction on November 18, have been satisfied, but that the rest will have to be treated as creditors, due to the conditions of the process, reported EFE.

Norwegian expects the Irish courts to approve the plan within two weeks and then the same in Norway, so that the capital increase could be completed in May.

The Norwegian airline aims to reduce its debt to around NOK 20 billion (€1.939 billion) and raise up to a further NOK 5 billion (€485 million) through a new share issue and other forms of equity capital.

The company wants to focus on domestic flights in Norway and the Nordic countries and connecting them to major destinations on the continent, planning to operate a fleet of 50 aircraft this year and around 70 by 2022.

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