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Norwegian close to winning approval for rescue plan

Norwegian close to winning approval for rescue plan

Norwegian Air is inching closer to securing approval for its financial survival plan.

Reports suggest shareholders have backed key elements of the proposal, with about 95 per cent of votes cast supporting converting debt into equity.

Approval of the scheme is a vital to allow the airline tap government credit guarantees as it seeks to overcome the coronavirus crisis.

Airlines around the world have been hit hard by the impact on travel of the pandemic, with many forced to turn to governments for state aid to avoid bankruptcy.

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Swiss and Edelweiss are among the latest carriers to received assistance.

The outcome of the Norwegian online shareholder vote was reported by newspaper Dagens Naeringsliv and public broadcaster NRK.

On Sunday the carrier said bondholders had signed up to the plan, which was narrowly rejected in a vote on Thursday.

Norwegian Air said lessors are now willing to convert at least $730 million of debt into equity, up from $550 million earlier, and talks are ongoing for possible further conversion.