April 28, 2020 / 9:26 AM / a month ago

Norwegian Air slightly amends terms of conversion plan after talks with bondholders

FILE PHOTO: Passengers board a Norwegian Air plane in Kirkenes, Norway October 26, 2019. REUTERS/Gwladys Fouche

OSLO (Reuters) - Norwegian Air (NWC.OL), the budget carrier that is fighting for its survival, has made some amendments to the terms of its debt-to-equity conversion plan in response to demands from bondholders, it said on Tuesday.

On Monday the airline published the full details of a plan that may help it survive the coronavirus outbreak, if creditors and shareholders give it a green light.

“The revised proposal to the bondholders reflects that the company continues to make progress with its other stakeholders,” Norwegian Air said in a statement.

If the swap is not approved, Norwegian has said, the company would run out of cash by mid-May. It has grounded 95% of its fleet, leaving just seven aircraft in operation.

Among the changes, Norwegian Air proposes to convert 50% of the value of two of the bonds into shares, rather than 60% as first proposed, and 80% of the value of a third bond into shares, rather than 85% as first proposed.

Bondholders will vote on the proposals on Thursday. If they approve the terms, the proposal is then put to a vote to shareholders on Monday.

Reporting by Gwladys Fouche, editing by Terje Solsvik

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