{"id":7972,"date":"2020-04-14T06:26:07","date_gmt":"2020-04-14T11:26:07","guid":{"rendered":"http:\/\/planesintheair.com\/?p=7972"},"modified":"2020-04-14T06:27:07","modified_gmt":"2020-04-14T11:27:07","slug":"norwegian-air-shares-plummet-60-after-proposed-rescue-plan","status":"publish","type":"post","link":"https:\/\/planesintheair.com\/?p=7972","title":{"rendered":"Norwegian Air Shares Plummet 60% After Proposed Rescue Plan"},"content":{"rendered":"\n

OSLO (Reuters) – The shares of Norwegian Air plunged by more than 60% on Tuesday as they resumed trade after the airline proposed a financial rescue package on April 8 that would significantly dilute existing equity.<\/p>\n\n\n\n

If approved by creditors and shareholders, the plan would convert $4.3 billion of debt into equity, and also raise some new equity, wiping out much of the remaining value of the company’s current shares.<\/p>\n\n\n\n

The budget carrier has grounded most of its fleet due to the impact of the COVID-19 outbreak on travel and on March 16 announced the temporary layoff of 7,300 staff, about 90% of its workforce.<\/p>\n\n\n\n

Norwegian’s shares plunged 62.5% in early trade to an all-time low of 3.10 crowns, valuing the company at just 500 million Norwegian crowns ($48.8 million).<\/p>\n\n\n\n

Norwegian was facing financial problems even before the coronavirus outbreak. Before Tuesday’s fall, its shares were down 78% this year, underperforming other major European airlines, which were down between 30% and 60%.<\/p>\n\n\n\n

The airline must now convince its creditors to agree to the rescue plan before it is put to a shareholders’ vote on May 4.<\/p>\n\n\n\n

The Oslo stock exchange said on Tuesday that trading in Norwegian’s shares would be subject to special observation until there was further clarification of the airline’s situation.<\/p>\n\n\n\n

Special observation is used under circumstances that may make the valuation of a security particularly uncertain, according to the market operator’s guidelines.<\/p>\n\n\n\n

($1 = 10.2490 Norwegian crowns)<\/p>\n\n\n\n

(Reporting by Terje Solsvik, editing by Gwladys Fouche\/Victoria Klesty\/Susan Fenton)<\/p>\n\n\n\n

\"\"
Passengers board a Norwegian Air plane in Kirkenes, Norway<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

The shares of Norwegian Air plunged by more than 60% on Tuesday as they resumed trade after the airline proposed a financial rescue package on April 8 that would significantly dilute existing equity.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10174,797,89,5637,6117,10701,10700,5992,7929,2203,4957,5676,10366,10169,10176,1397,10173,10195,10171,868,10182,1103],"tags":[4601,539,420,118,6741,2819,160,1190,1925,655,11301,10634,3138,3460,2495,11300,5048,11086,2553,1180,5305,2514,1483,3709,11306,5084,8778,5257,11303,718,412,1514,97,1513,3946,10162,5970,1485,11298,6783,3325,3912,9080,7597,3017,11299,1288,1851,2275,10907,6263,11308,7236,11305,640,1691,1658,1916,11304,4107,11307,11302,7099],"class_list":["post-7972","post","type-post","status-publish","format-standard","hentry","category-airline","category-airline-news","category-aviation-news","category-business-news","category-china-news","category-coronavirus","category-covid-19","category-economic-news","category-european-news","category-finance-news","category-global-politics","category-international-news","category-low-cost-carrier","category-news","category-stock-news-2","category-stock-news","category-stockairline","category-transport","category-transportation","category-transportation-news","category-travel","category-travel-news","tag-after","tag-air","tag-airline","tag-airlines","tag-announced","tag-approved","tag-aviation","tag-budget","tag-carrier","tag-company","tag-convert","tag-covid-19","tag-creditors","tag-crowns","tag-debt","tag-dilute","tag-due","tag-editing","tag-equity","tag-european","tag-existing","tag-financial","tag-fleet","tag-grounded","tag-gwladys-fouche","tag-impact","tag-layoff","tag-major","tag-much","tag-new","tag-news","tag-norway","tag-norwegian","tag-oslo","tag-out","tag-outbreak","tag-package","tag-plan","tag-plummet","tag-plunged","tag-proposed","tag-raise","tag-remaining","tag-reporting","tag-rescue","tag-resumed","tag-reuters","tag-shareholders","tag-shares","tag-significantly","tag-staff","tag-susan-fenton","tag-temporary","tag-terje-solsvik","tag-trade","tag-transport","tag-transportation","tag-travel","tag-underperforming","tag-value","tag-victoria-klesty","tag-wiping","tag-workforce"],"_links":{"self":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/7972","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7972"}],"version-history":[{"count":1,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/7972\/revisions"}],"predecessor-version":[{"id":7974,"href":"https:\/\/planesintheair.com\/index.php?rest_route=\/wp\/v2\/posts\/7972\/revisions\/7974"}],"wp:attachment":[{"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7972"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planesintheair.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}