Oslo (dpa) - Bankruptcy-threatened Norwegian Air has, after days of negotiations, received the green light from bondholders to enter into a state-backed rescue plan, the budget airline said on Sunday.
A fourth and final group of creditors has now approved the airline's debt restructuring plans, Norwegian chef executive Jacob Schram wrote on Sunday in a message to the Oslo Stock Exchange.
Schram emphasized that the creditors' approval brought Norwegian one step closer to receiving a crucial government loan package.
The airline's priority is now to reach an agreement with the fleet's lessors ahead of a special general meeting on Monday, he added.
Norwegian had been working to raise the new equity required by the government to be eligible for the loan package, the statement said.
A key part of the plan would be to get bondholders to convert larger portions of the loan into shares.
Norwegian shareholders would decide whether to accept the rescue plan at a special meeting on Monday, the statement added.
Norwegian, like many other airlines, is struggling with a significant drop in demand amid the global coronavirus pandemic.
The price of shares in the budget carrier has plummeted in recent weeks. Around 7,650 employees have been placed on temporary leave.
Four of Norwegian's Danish and Swedish subsidiaries, those which employ the airline's pilots and cabin crew, have already filed for bankruptcy.
The airline was suffering from financial problems before the crisis hit, having racked up large debts during a rapid expansion course since its founding in 1993.
Last year, the carrier was also badly hit by the withdrawal of the Boeing 737 Max 8 jet.
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