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The Icelandic low-cost airline WOW Air has announced that its ongoing negotiations with Indigo Partners, LLC have collapsed and that it would not resume negotiations with Icelandair to save the company. Negotiations ended yesterday when Indigo Partners canceled its plans to invest in WOW. WOW Air has announced its intention to conclude negotiations with Icelandair by Monday, March 25th.
WOW air CEO Sk & uacute; li Mogensen.
WOW air
March 9, WOW air had published a written notice of written procedure bondholders reporting progress in its negotiations with Indigo Partners.
"Although no agreement has been reached, the parties continue to work in good faith to close an investment as soon as possible." the airline said.
WOW also said that Indigo Partners was planning to issue a new super senior convertible loan of up to $ 90 million to WOW. "finance the recovery of its activity."
The loan was intended to keep the airline in business during protracted negotiations including additional due diligence, bond debt adjustments, the cancellation of a subordinated shareholder loan and a lower valuation. of the society.
"The proposed valuation is structured so that the current shareholders retain ownership and the value of the shares sold depends on the recovery of activity over the next three years and is zero at the bottom. from the fork, "the airline said.
On the same day, the airline also issued a statement confirming that it "in violation of the obligations of information and financial commitments" in accordance with the regulations governing the sureties issued to the company as part of a previous rescue operation.
"The Company will enter into discussions with the bondholders and will submit a new written procedure regarding ongoing negotiations between Indigo Partners and WOW Air, "the company said. & Nbsp;
In order to reduce its financial obligations at the end of last year, the airline planned to sell nearly half of its fleet of narrow-body vehicles, reducing the number of aircraft from 20 to 11. End of December , WOW Air has announced sold two Airbus A321 leased aircraft to Air Canada.
The airline also laid off 111 employees in December of last year and announced that it would not renew contractors and temporary staff. "At the moment," there were still about 1,000 employees at the airline.
Indigo Partners intervened last November with a possibleescue package for the Icelandic carrier in difficulty& nbsp; after previous negotiations for the acquisition by Icelandair group fell apart.
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The Icelandic low-cost airline WOW Air has announced that its ongoing negotiations with Indigo Partners, LLC have collapsed and that it would not resume negotiations with Icelandair to save the company. Negotiations were completed yesterday when Indigo Partners canceled its investment project in WOW. WOW Air has announced its intention to conclude negotiations with Icelandair by Monday, March 25th.
The CEO of WOW air, Skúli Mogensen.
WOW air
On March 9, WOW air issued a written notice of procedure to bondholders stating the progress of negotiations with Indigo Partners.
"Although no agreement has been reached, the parties continue to work in good faith to complete an investment as soon as possible," the airline said.
WOW also indicated that Indigo Partners was considering granting a new super senior convertible loan of up to $ 90 million to WOW "to fund the turnaround of its business."
The loan was intended to keep the airline in business during protracted negotiations including additional due diligence, bond debt adjustments, the cancellation of a subordinated shareholder loan and a lower valuation. of the society.
"The proposed valuation is structured so that current shareholders retain their holdings and that the value of the shares sold depends on the turnaround of the company over the next three years and to zero in the bottom of the fork, "said the airline.
On the same day, the airline also issued a statement confirming that it "violated the disclosure obligations and financial covenants" imposed by the regulations governing the bonds issued to the company during the day. an earlier rescue operation.
"The company will begin discussions with bondholders and will submit a new written procedure regarding ongoing negotiations between Indigo Partners and WOW Air, "the company said.
In order to reduce its financial obligations at the end of last year, the airline planned to sell nearly half of its fleet of narrow-body vehicles, reducing the number of aircraft from 20 to 11. End of December , WOW Air has announced sold two Airbus A321 leased aircraft to Air Canada.
The airline also laid off 111 employees in December of last year and announced that it would not renew contractors and temporary staff "for the time being", even though there remained about 1,000 employees on the payroll.
Last November, Indigo Partners proposed a rescue plan for the troubled Icelandic carrier following the break-up of previous negotiations for its acquisition by the Icelandair Group.
