Norwegian Air’s Irish subsidiaries received Ireland’s High Court decision relating to creditor protection giving the airline time to continue on the restructuration of more than $7.7 billion debts.
The Irish High Court accepted Norwegian Air’s request and agreed to grant the airline’s subsidiaries protection from its creditors. On December 7, 2020, Michael Quinn, Judge of the High Court, confirmed the appointment of KPMG, an Irish accounting firm, to start the examinership legal process of Norwegian Air International, Arctic Aviation Assets DAC (AAA), Drammensfjorden Leasing, Torskefjorden Leasing, Lysakerjorden Leasing and Norwegian Air Shuttle.
Following the court’s decision, KPMG would have to come up with Norwegian Air’s rescue plan in the coming 100 days as the court found that the airline could survive the crisis if several measures, including getting the court‘s protection, would be taken. Following Ireland’s law, the examinership legal process is the equivalent of Chapter 11 bankruptcy proceedings in the United States, allowing the airline to continue its operations while being protected from its creditors for the next 100 days.
“I have concluded in this case that it is appropriate to appoint an examiner both in relation to the five petitioner companies and also in relation to the related company Norwegian Air Shuttle ASA (NWARF),” Quinn told the court.
In November 2020, Norwegian Air entered an examinership process relating Norwegian Air International Limited (NAI), its wholly-owned asset company Arctic Aviation Assets DAC and some of AAA’s subsidiaries. On November 18, 2020, the beleaguered airline, which debt and other liabilities stood at 66.8 billion crowns ($7.7 billion) at the end of September 2020, asked Ireland’s High Court to give the protection under Irish law from its creditors, including aircraft lessors Aercap and BOC Aviation and begun the reorganization process.