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Wow seeks agreement with bondholders to restructure

Icelandic budget carrier Wow Air is holding talks with creditors and bondholders with a view to agreeing a voluntary restructuring of the troubled company.

Wow Air’s negotiations with Indigo Partners, and renewed talks with Icelandair Group, have failed to result in an investment or co-operation agreement.

As a result Wow’s management is exploring other financing mechanisms for the budget airline.

It states that a majority of its bondholders, as well as other creditors, are participating in “advance” discussions on a possible voluntary restructuring.

This would include the conversion of debt into equity as part of a plan to provide funding to the company and progress towards “long-term sustainability”, it adds.

As part of its financing efforts last year it conducted the initial phase of a bond issue planned to be worth up to €100 million.

Wow Air is set to disclose more details of the discussions and its strategy on 25 March.

The airline confirms that all talks with Icelandair Group – which had revisited its interest in the budget carrier after prospective Wow partner Indigo pulled out – have been “cancelled”.

Wow is owned primarily by investment vehicle Titan Fjarfestingafelag.

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