Norwegian Air shareholders voted in favor of a proposed rescue plan, helping the budget carrier unlock government aid and avoid bankruptcy.
During the global coronavirus outbreak, the airline has canceled almost all flights and said it would temporarily lay off 90% of its workforce.
How the plan works: It will proceed with a large debt for equity swap, which is when creditors swap their company debt loans for shares. It will also raise up to $38 million equity by issuing more shares.
Norwegian Air said in statement it expects to convert more than 10 billion Norwegian Krone of debt into equity. That is about $960 million USD. The measures will enable the airline to qualify for state aid of 3 billion Norwegian Krone, around $288.7 million USD.