LONDON – The liquidation of Norwegian Air Shuttle (DY), as court documents show, would leave a deficit of €6bn and write off most of its assets.

An independent accountant’s report shows that the liquidation and writeoff of DY assets would leave it with a deficit of US$7.1bn (€5.98bn), effectively eliminating any possibility of creditors collecting any money owed to them.

Norwegian and its subsidiaries have sought protection from creditors in the Irish court because the aircraft are being operated by registered companies based in the republic. The case will return to court on December 7.

Norwegian Air Boeing 787. Photo: Andrea Ongaro

Reports of an accounting firm


According to a report by Ken Fennell, a member of an accounting firm, Norwegian has predicted that it will use all cash by March 2021 and does not have enough money to pay all its creditors.

According to the report, the companies still have a very good chance of survival if they implement some measures proposed by management, including renegotiating lease payments on their aircraft, deferring some loan repayments, cutting the fleet and canceling orders future aircraft.

Judge Michael Quinn on Wednesday appointed Kieran Wallace as an interim examiner of Irish-based Norwegian Air International (NAI), Arctic Aviation Assets DAC and three of its subsidiaries, Drammersfjorden Leasing, Torskefjorden Leasing and Lysakerfjorden Leasing. The three leasing companies own a total of 72 Boeing aircraft, and owe both creditors and banks a total of US$4.6bn.

Norwegian Boeing 787-9 Photo: Luca Flores

Secured Debts


Native company Norwegian Air Shuttle sells the flights and provides money to its operating and financial branches when they need it. Arctic Aviation’s subsidiaries own a total of 140 vessels and owe their creditors US$5.2bn. On top of that, this includes US$2.1bn for planes ordered in favor of Airbus and Boeing.

Norwegian is renegotiating terms with creditors from other branches. If these talks are unsuccessful the businesses may be liquidated individually or involved in the review process at a later date. In fact, financial problems worsened when COVID-19 reduced the number of passengers by 78%.

Should Judge Quinn confirm the appointment and extend protection on December 7, the day of the court hearing, Mr. Wallace will have 100 days to present an appropriate rescue plan.

As mentioned in Irishtimes, “Irish aircraft leasing giant Aercap, took shares in Norwegian in lieu of debt in a restructuring earlier this year. The company cut its stake this week to 9 per cent from 13.4 per cent. It did not comment. Bank of China Aviation confirmed that it remained a creditor of Norwegian. It also took shares instead of some debt due to it and has since cut this stake to just below 10 per cent from 13 per cent.”

Norwegian Boeing 787-9 Dreamliner G-CKWA at London Gatwick Airport. Photo: Daniel Sander.

The subsidiaries of Norwegian Air Shuttle


  • Arctic Aviation Assets: Total assets US$1.8bn; total liabilities US$414.6m
  • Drammersfjorden Leasing: Total assets US$220.7m; total liabilities US$178.7m
  • Torskefjorden Leasing: Total assets US$2.6bn; total liabilities US$2bn
  • Lysakerfjorden Leasing: Total assets US$641.7m; total liabilities US$591m
  • Norwegian Air International: Total assets US$417.6m; total liabilities US$376.2m

Featured image: Norwegian Air Boeing 787-9 Leaving off from Rome Fiumicino Intl Airport. Photo: Andrea Ongaro

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