A financial reconstruction plan for low-cost carrier Norwegian has been sent to creditors and shareholders.

If the plan is approved by the Irish and Norwegian courts in the coming weeks, the company can continue the reconstruction processes and initiate a capital raise in April, targeting completion in May.

Jacob Schram, chief executive of Norwegian, said: “We have had many constructive and challenging negotiations with creditors since the indicative plan was presented on January 14th.

“The examiner in Ireland and the reconstructor in Norway both believe that this plan is in the interest of the creditors and shareholders of the company.

“This is an important milestone in the process of securing our future.”

The examiner will firstly present formal proposals for the restructuring based on the plan presented to the creditors of the company.

Following the necessary creditor meetings the proposals will then be presented to the Irish High Court for approval.

The proposals outline how creditors will be dealt with in the actual reconstruction.

Unsecured creditors who will not participate in the planned capital raise, will be entitled to cash and a dividend totalling to around five per cent.

The dividend claims may be converted to shares, in total representing approximately 25 per cent of the share capital following the restructuring.

New investors in the capital raise will receive approximately 70 per cent of the post-restructuring share capital, and current shareholders approximately five percent.

Geir Karlsen, chief financial officer of Norwegian, said: “It is hoped that the Irish High Court will make their final decision within the next couple of weeks.

“If approved by the Irish Court, the plan will be dealt within the reconstruction process in Norway.

“If everything goes according to plan, we will be able to carry out the capital raise in May.”