Norwegian Air slightly amends terms of conversion plan after talks with bondholders

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FILE PHOTO: Passengers board a Norwegian Air plane in Kirkenes, Norway October 26, 2019. REUTERS/Gwladys Fouche

OSLO (Reuters) – Norwegian Air (NWC.OL), the budget carrier that is fighting for its survival, has made some amendments to the terms of its debt-to-equity conversion plan in response to demands from bondholders, it said on Tuesday.

On Monday the airline published the full details of a plan that may help it survive the coronavirus outbreak, if creditors and shareholders give it a green light.

“The revised proposal to the bondholders reflects that the company continues to make progress with its other

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The growing worry for bondholders: Getting ‘primed’

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NEW YORK (Reuters) – Bondholders in particularly hard-hit sectors like energy, travel and leisure have another issue to watch for as companies struggle to survive the economic shutdown – getting demoted by new debt issues.

FILE PHOTO: A nearly deserted Wall Street and the steps of Federal Hall are seen in lower Manhattan during the outbreak of the coronavirus disease (COVID-19) in New York City, New York, U.S., April 3, 2020. REUTERS/Mike Segar/File Photo

This phenomenon is known in the market as getting “primed” or “layered,” where a company in need of cash offers a bond backed by collateral, called

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