Published on January 18th, 2021 | by Alan Dwyer0
Norwegian Subsidiary Wound Up
A subsidiary of Norwegian Airlines has been wound up in the Irish High Court. An examiner was appointed last month to Norwegian Airlines and several of its subsidiary companies with debts in excess of €4 billion. Following the decision by the airline to cease its long haul fights the examiner to the companies, Kieran Wallace, on Friday asked Mr Justice Michael Quinn to make an order winding up one of the Irish subsidiaries, Torskefjorden Leasing Ltd (TLL).
Lawyers representing most of the group’s creditors said they were either not opposing, or taking a neutral stance regarding the application to wind up TLL. The judge had earlier adjourned the application to Friday evening to allow any of the airline’s creditors an opportunity to air any views or objections they might have had regarding the application to wind up TLL. The judge then made the order for winding up the company late on Friday evening.
Torskefjorden Leasing Ltd operated as a lessor of the airlines 24 wide-body Boeing 787 Dreamliners, which it had sub-leased to other companies within the group, to operate its long-haul routes. TLL’s only income came from the sub-leasing arrangements. As a result of the decision to end the long-haul business, Mr Wallace was of the view that TLL should exit the examinership process and be liquidated.
TLL, along with Irish-registered entities Arctic Aviation Assets DAC, Norwegian Air International Ltd, Drammensfjorden Leasing Ltd and Lysakerfjorden Leasing Ltd, were granted court protection from their creditors late last year. Those firms are involved in activities including the leasing, management and subleasing of assets, including aircraft, and financing. The court heard that while the business plan may have a significant impact on the numbers employed by the group as a whole, Mr Wallace remains of the view that the airline has a reasonable prospect of survival if certain steps are taken. The group’s creditors include subsidiaries of Airbus, Boeing and leasing company Avolon, several financial firms and the Revenue Commissioners.