|
The
legislation replaces current regulation on debt negotiations and
relaxes rules for converting debt into equity.
"(The new law) is a more efficient tool to ... sort out what
parts of a business can be strong enough to survive," Justice
Minster Monica Maeland told parliament.
Her comments were not aimed at any specific firms, but budget
carrier Norwegian Air is among those likely to benefit, said
Kristoffer Aaseboe, a lawyer at Oslo-based law firm Bull & Co.
"This temporary restructuring law will increase the likelihood
to get restructurings in place," Aaseboe, who specialises in
insolvency and reconstruction, told Reuters.
The airline is seeking to convert debt to equity to qualify for
state guarantees in a bid to survive the coronavirus crisis,
which has grounded all but a handful of its nearly 160 aircraft.
The law will mean only 50% of the debtors and 50% of
shareholders have to agree to a solution, which is less strict
than under the current law, Bull & Co lawyer Klemet Gaski said.
Norwegian Air this week said four of its Swedish and Danish
subsidiaries had filed for bankruptcy and that it had ended
staffing contracts in Europe and the United States, putting some
4,700 jobs at risk.
The company still aims to emerge from the crisis, and will hold
meetings of bondholders and shareholders ahead of a vote on its
proposed plan on May 4.
Norwegian Air declined to comment on Friday.
(Editing by Terje Solsvik;Editing by Elaine Hardcastle)
[© 2020 Thomson Reuters. All rights
reserved.] Copyright 2020 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
