Norwegian Air Shuttle ASA, the parent group of Norwegian Air, has initiated a process in Ireland that will give it bankruptcy protection while it reorganises its finances.
The group has started the examinership process in Ireland, where its aircraft assets are held, following the Norwegian government's decision not to provide further financial support for the carrier.
The process of examinership in Ireland allows financially sustainable businesses to address elements of the business which require restructuring with the aim of protecting jobs and preserving the core value of the business.
This protection, through a court-appointed examiner, ultimately allows a company to secure new capital and implement a legally binding scheme for the settlement of debts.
The group said that based on its current cash position and the projections going forward, it believes it has sufficient liquidity to go through the process, which is estimated to take up to five months.
Jacob Schram, Norwegian CEO, said: “Seeking protection to reorganise under Irish law is a decision that we have taken to secure the future of Norwegian for the benefit of our employees, customers and investors. Our aim is to find solutions with our stakeholders that will allow us to emerge as a financially stronger and secure airline.”
He said: “Our intent is clear. We will emerge from this process as a more financially secure and competitive airline, with a new financial structure, a rightsized fleet and improved customer offering.”
The airline will continue to operate its current, very restricted domestic route network, and trade as normal on the Oslo Stock Exchange.