Icelandair Group is continuing to have a dialogue with its bond investors and are evaluating alternatives to achieve a long-term solution with respect to the previously communicated temporary waiver throughout November 2018, resulting from the non-compliance with certain covenants in the terms and conditions of Icelandair’s USD 190 million senior unsecured bonds (ISIN NO0010776982) and the USD 23,660,000 unsecured bonds (ISIN IS0000025427).
Icelandair Group announced on 26 November 2018, that it is unlikely that all the conditions of the Share Purchase Agreement in relation to the acquisition of WOW air will be fulfilled before the shareholder meeting of Icelandair on 30 November 2018. The Share Purchase Agreement is furthermore subject to the Shareholder’s meeting approval.
Icelandair Group expects to release a new Notice of Written Procedure addressing a long-term solution following the Shareholder’s meeting on 30 November 2018. Icelandair Group will present measures to strengthen Icelandair’s balance sheet further and submit a proposal to bondholders that is intended to achieve a long-term solution for Icelandair Group and bondholders.