Published on April 26th, 2021 | by Alan Dwyer0
Irish High Court Signs Off on Norwegian Survival Plan
The Irish High Court has now formally approved the survival plan for Norwegian Airlines and its associated companies. In a written submission to the Judge, the examiner, Kieran Wallace of KPMG, said the scheme for the survival of the airline had been approved by all parties. The Judge was in agreement and signed off on the deal. In his judgment, Mr Justice Quinn said after analysing the evidence put before the court by the examiner he was satisfied that if the rescue proposals are confirmed and implemented, the restructuring achieved will facilitate the ongoing survival of the companies as going concerns. The airline and its associated companies had filed for examinership last November with debts of $5.2 billion (€4.3 billion). The judge also noted that it was in the best interest of the company, its employees and stakeholders that the airline would continue to trade as the outcome would be less favourable if it was wound up.
The examiner was appointed by the Irish High Court last December to the airline’s parent company, Norwegian Air Shuttle (ASA) and four other Irish registered companies involved with the airline. One of the other subsidiary companies, Torskefjorden Leasing Ltd. was wound up when the decision was made by the company to cease its long-haul operations. The airline had up to 10,000 staff operating at bases across eleven countries at its peak in 2019. However, sustained losses and the grounding of the Boeing 737MAX and problems with the Boeing 787 Dreamliner’s adversely affected the airline’s finances prior to the COVID-19 pandemic. The airline now only operates a handful of Boeing 737-800 aircraft, mostly on Norwegian domestic services and future expansion plans remain cautious.