Norwegian Air Shuttle (NAS) is close to an agreement on ending the lease of 10 aircraft with Industrial and Commercial Bank of China, ICBS, writes The Irish Times.
The troubled Scandinavian carrier and four Irish subsidiaries have High Court protection from creditors while examiner Kieran Wallace of accountants KPMG works on a rescue plan for the business.
According to The Irish Times, Brian Kennedy, NAS’s senior counsel, told the court that there had been “a significant degree of progress” between Norwegian and ICBC on settling the airline’s liabilities to the lessor.
Norwegian Air Shuttle has asked the court permission to repudiate contracts including aircraft leases. This involves ending these agreements with settlements covering both the period of the examinership and payments due before Mr. Wallace’s appointment in November.
Creditors who have their agreements terminated in this way will receive the same dividend as that agreed by the examiner with all other claimants, on any outstanding debt due under those deals.