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Norwegian Air stock falls 63pc on first hearing debt-to-equity scheme
来源：shippingazette.com 编辑：编辑部 发布：2020/04/18 10:33:18
NORWEGIAN AIR's plan convert debt into company shares in the face of the coronavirus outbreak has ruined hopes to return the company to profitability, driving the stock down 63 per cent, reports Bloomberg.
The company is calling on creditors, including aircraft lessors and suppliers, to convert as much US$4.3 billion in debt to meet government terms for the carrier to access a state aid package, and for a private placement.
In the first trading in Oslo since the plan was announced last week, the shares suffered their biggest drop and fell to the lowest level since Norwegian Air's listing in 2003.
"Norwegian is at the end of the line," Sanford C Bernstein Ltd analyst Daniel Roeska said in a note to clients before the market opened. Though there's still hope for the airline, the situation is "lose-lose" for shareholders, downgrading the stock to underperform with a target price of zero.
Widespread restrictions on travel due to the novel coronavirus destroyed Norwegian's target of returning to profitability this year, after it deployed sweeping measures to cut costs and reduce capacity following years of debt-fueled growth. The company's fleet is now largely grounded.
The company is calling on creditors, including aircraft lessors and suppliers, to convert as much US$4.3 billion in debt to meet government terms for the carrier to access a state aid package, and for a private placement.
In the first trading in Oslo since the plan was announced last week, the shares suffered their biggest drop and fell to the lowest level since Norwegian Air's listing in 2003.
"Norwegian is at the end of the line," Sanford C Bernstein Ltd analyst Daniel Roeska said in a note to clients before the market opened. Though there's still hope for the airline, the situation is "lose-lose" for shareholders, downgrading the stock to underperform with a target price of zero.
Widespread restrictions on travel due to the novel coronavirus destroyed Norwegian's target of returning to profitability this year, after it deployed sweeping measures to cut costs and reduce capacity following years of debt-fueled growth. The company's fleet is now largely grounded.