OSLO (Reuters) – Norwegian Air NWC.OL received a small injection of government funds on Tuesday as part of the state’s coronavirus bailout, and began talks with creditors complaining of missing payments amid growing concerns over the carrier’s liquidity.

FILE PHOTO: A Norwegian Air plane is refueled at Oslo Airport Gardermoen, Norway November 7, 2019. REUTERS / Lefteris Karagiannopoulos

The moves came as the carrier’s founder sold more shares, the latest move in the past month to reduce his stake.

Norwegian, which has ground most of its planes and temporarily laid off 90% of its staff, or around 7,300 people, said it needed access to money “in weeks, not months.”

A condition for receiving the first 300 million Norwegian kroner ($ 27.50 million) from Norway’s bailout was that commercial lenders be prepared to provide 10% of that amount while the government would provide the remaining 90%.

“Norwegian is pleased to announce that two Nordic banks have obtained credit committee approval to provide a guarantee of the required 10%,” the company said in a statement.

“Norwegian will ensure the necessary leeway to secure further guarantees from the Norwegian government. “

Norway said on March 19 that Norwegian Air could obtain credit guarantees worth up to SEK 3 billion to help it weather the coronavirus crisis subject to a series of conditions.

Norwegian shares rose after the announcement, up 2.1 at 12:17 GMT, but underperformed the Oslo stock index .OSEAX which was up 4.8%.

Monday, the leasing company DP Aircraft DPAD.L said a unit of Norwegian Air had failed to make payments for two Boeing 787 Dreamliner in its fleet, which were due on March 13.

DP Aircraft and its asset manager, DS Aviation, will prioritize discussions with Norwegian “to determine whether and on what basis it may be able to meet its obligations,” said DP.

On Tuesday, the airline confirmed that it was in talks with leasing companies, including DP Aircraft, and other creditors to meet government demands for the bailout.

SALE OF STOCKS

Meanwhile, the founder of Norwegian Air and his ex-CEO, Bjoern Kjos, and the former chairman, Bjoern Kise, have continued to reduce their joint stake in the airline through their holding, HBK Holding.

On Tuesday, they reduced their stake from 3,652 shares, or 0.002%, to 9.99%, according to a stock market publication. This is in addition to the 3.2 million shares they have sold since mid-February, according to information disclosed by the company.

Reuters could not reach Kjos or Kise for comment.

Stocks have lost more than 75% of their value since February as the virus plunged the airline industry into crisis.

The airline is now working with the state credit agency GIEK and the Norwegian Ministry of Trade and Industry to clarify the criteria and conditions for receiving the remaining installments of the program, he said.

A tranche of 1.2 billion kroner depends on the deferral of payments by creditors and the cancellation of interest payments while the guarantee lasts.

Another 1.5 billion kroner would require Norwegian to increase its equity, the government said.

The company said it is now seeking additional collateral from financial institutions to help it access those tranches.

“The government guarantee program is crucial for the company as the current state of the capital markets, combined with the difficult times for the airline industry, limits the options available,” Norwegian said.

The Norwegian Ministry of Industry did not immediately respond to a request for comment.

(Graphic: Norwegian Air and other European airlines,)

Editing by David Goodman, Jason Neely and Josephine Mason

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