As previously announced, Icelandair Group is negotiating with its stakeholders in order to be able to initiate offering of new shares and complete a financial restructuring of the Company.
The negotiations are in the final stages. Fully documented agreements have been completed with the majority of creditors. Negotiations with the remaining creditors are at an advanced stage and final agreements are expected to be fully documented next week. The agreements will be conditioned upon the completion of the upcoming share offering and the Company entering into agreement regarding a government guaranteed credit facility. The negotiations with creditors have focused on restructuring cash outflows to match expected future cash inflows. The creditors concessions will be vital in ensuring the flexibility of the Company for a strong resurgence when markets start to open up again.
The Company has already completed long-term collective-bargaining agreements with the pilot-, cabin crew- and aircraft maintenance unions which will increase the Company’s flexibility and competitiveness going forward. Discussions on a term sheet for a credit facility guaranteed by the Icelandic Government and to be provided by Islandsbanki and Landsbankinn are at an advanced stage. The facility will among other things be conditioned upon the completion of the upcoming share offering. Negotiations with Boeing regarding additional compensation for Icelandair’s loss due to the grounding of the Boeing 737-MAX aircraft and future deliveries are at an advanced stage. The Company expects to receive further compensation for its loss due to the grounding and that changes will be made to the delivery schedule of future Boeing 737-MAX orders.
Upon the completion of agreements with remaining stakeholders, the Company intends to publish an information memorandum for potential investors in the share offering. Subsequently, a prospectus will be made available, followed by the offering of new shares in the Company which is expected to be finalized in August. Information on share price and number of issued shares will be published when decided upon by the Company’s Board of Directors.
Further information on the Company’s outlook will be included in the information memorandum and prospectus.