THE HIGH COURT 2020 No. 366 COS in the MATTER of ARCTIC AVIATION ASSETS DESIGNATED ACTIVITY COMPANY and in the MATTER of NORWEGI
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THE HIGH COURT 2020 No. 366 COS IN THE MATTER OF ARCTIC AVIATION ASSETS DESIGNATED ACTIVITY COMPANY AND IN THE MATTER OF NORWEGIAN AIR INTERNATIONAL LIMITED AND IN THE MATTER OF DRAMMENSFJORDEN LEASING LIMITED AND IN THE MATTER OF TORSKEFJORDEN LEASING LIMITED AND IN THE MATTER OF LYSAKERFJORDEN LEASING LIMITED AND IN THE MATTER OF PART 10 OF THE COMPANIES ACT 2014 AND IN THE MATTER OF NORWEGIAN AIR SHUTTLE ASA AS A RELATED COMPANY WITHIN THE MEANING OF SECTION 517 AND SECTION 2(10) OF THE COMPANIES ACT 2014 PROPOSALS FOR A SCHEME OF ARRANGEMENT BETWEEN NORWEGIAN AIR SHUTTLE ASA (IN EXAMINATION UNDER PART 10 OF THE COMPANIES ACT 2014) AND ITS MEMBERS AND CREDITORS Kieran Wallace Examiner KPMG 1 Stokes Place St Stephen's Green Dublin 2 Ireland CONTENTS 1. DEFINITIONS ........................................................................................................................................................... 3 2. INTERPRETATION ................................................................................................................................................ 16 3. BACKGROUND AND RECITALS .......................................................................................................................... 17 4. THE REPORT AND FORMULATION OF PROPOSALS ........................................................................................ 21 5. EFFECTIVE DATE AND EFFECTIVE TIME ........................................................................................................... 22 6. EXAMINER'S AUTHORITY REGARDING THE NORWEGIAN RESTRUCTURING PLAN .................................... 23 7. THE INVESTMENT ................................................................................................................................................ 24 8. SUMMARY OF PROPOSALS ................................................................................................................................ 27 9. TREATMENT OF MEMBERS................................................................................................................................. 28 10. TREATMENT OF CREDITORS .............................................................................................................................. 28 11. DETERMINING THE CLAIMS OF UNAGREED CREDITORS ............................................................................... 42 12. WAIVING OF CREDITOR RIGHTS ........................................................................................................................ 45 13. IMPLEMENTATION OF PROPOSALS................................................................................................................... 46 14. GENERAL DATA PROTECTION REGULATION ................................................................................................... 47 15. MISCELLANEOUS PROVISIONS .......................................................................................................................... 47 SCHEDULE 1 ........................................................................................................................................................................... 49 SCHEDULE 2 ........................................................................................................................................................................... 50 SCHEDULE 3 ........................................................................................................................................................................... 51 SCHEDULE 4 ........................................................................................................................................................................... 53 SCHEDULE 5 ........................................................................................................................................................................... 54 SCHEDULE 6 ......................................................................................................................................................................... 120 SCHEDULE 7 ......................................................................................................................................................................... 121 SCHEDULE 8 ......................................................................................................................................................................... 122 SCHEDULE 9 ......................................................................................................................................................................... 123 SCHEDULE 10 ....................................................................................................................................................................... 124 2 1. Definitions In these Proposals, unless inconsistent with the subject or context, the following expressions bear the following meanings: "2019 Convertible Bonds", Norwegian Air Shuttle ASA 6.375 per cent. Senior Unsecured Convertible USD 34,500,000 Bonds 2019/2024 with ISIN NO 001 0868284 issued in November 2019 pursuant to bond terms dated 13 November 2019 (as amended and restated from time to time); "2019 Convertible Bond Creditor", the trustee of the 2019 Convertible Bonds identified in the Creditor Schedule; "2020 Convertible Perpetual Bonds", all outstanding bonds issued pursuant to the following zero coupon perpetual subordinated convertible bond issues pursuant to bond terms dated 22 May 2020 (as amended and restated from time to time): (a) Norwegian Air Shuttle ASA perpetual 0% USD subordinated convertible bond loan with ISIN NO 0010883515; (b) Norwegian Air Shuttle ASA perpetual 0% EUR subordinated convertible bond loan with ISIN NO 0010883416; and (c) Norwegian Air Shuttle ASA perpetual 0% SEK subordinated convertible bond loan with ISIN NO 0010883473; "2020 Convertible Perpetual Bond Creditors", the trustees of the 2020 Convertible Perpetual Bonds identified in the Creditor Schedule (and each a "2020 Convertible Perpetual Bond Creditor"); "2020 Restructuring", the restructuring of the Group referenced in Clause 3.14; "2020 Restructuring Plan", the plan referenced in Clause 3.15; "AAA Proposals", the Related Proposals in respect of AAA; "Act", the Irish Companies Act 2014 (as amended); "Affiliate", with respect to a person: (a) any other person who, directly or indirectly is in control of, or controlled by, or is under common control with, such person; or (b) any other person who is a director, officer or employee: (i) of such person; (ii) of any subsidiary or parent company of such person; or (iii) of any person described in paragraph (a) above, and for the purposes of this definition, control of a person shall mean the power, direct or indirect, (A) to vote on more than 50% of the securities having ordinary voting power for the election of directors of such person, or (B) to direct or cause the direction of the management and policies of such person whether by contract or otherwise; "Agreed Creditor", those Creditors whose Claims are accepted by the Company both in terms of liability and quantum and beside whose name in the Creditor Schedule there is the word "Yes"; 3 "Agreed Debt": (a) the amount due to a Creditor as appears beside its name and marked as agreed in the Creditor Schedule; (b) the amount due to a Creditor which has otherwise been agreed by the Company and the Creditor prior to the Irish Confirmation Date, determined by the Irish High Court under Section 537(3) of the Act or determined in accordance with the Expert Determination Process; (c) in the case of any Contingent Litigation Creditor, the amount which is found to be due to it as determined by the courts of competent jurisdiction (subject to any appeal) or the amount settled or agreed by the Company; or (d) in the case of any Customer Damages Claims Creditor, the amount which is found to be due to it by the Customer Claim Forum (subject to any appeal) or the amount settled or agreed by the Company; "Aircraft Experts": (a) Richard G. Spaulding of Spaulding Aviation Services LLC, 17971 Tobermory Place, Leesburg, VA 20175, United States of America; and (b) Robert Palmer, Malvern Consulting Limited of 17 Park Avenue, Solihull, West Midlands, B91 3EJ, United Kingdom, (and each an "Aircraft Expert"); "Aircraft Lease", any lease agreement between a non-Group company, Group company or other entity, as lessor, and the Company, as lessee, in respect of aircraft and/or aircraft engine(s) (excluding any Aircraft Sub-Lease); "Aircraft Sub-Lease", any sub-lease agreement between a Group company, as sub-lessor, and the Company or NAI, as sub-lessee, in respect of aircraft and/or aircraft engine(s); "Allocation Factors", has the meaning given to such term in Clause 7.13; "Allocation Principles", has the meaning given to such term in Clause 7.13; "AOC", an air operator's certificate; "Auditor", the Company's auditor, PricewaterhouseCoopers AS; "Board", the board of Directors of the Company; "Broker", DNB Markets, a part of DNB; "Business Day", any day other than a Saturday, Sunday or public holiday in either of Ireland or Norway; "Capital Increase Registration", has the meaning given to such term in Clause 5.1.4; "Cash Creditors", has the meaning given to such term in Clause 10.5; "Cash Pot", has the meaning given to such term in Clause 10.5; "Cash Pot Entitlement", has the meaning given to such term in Clause 10.6; "Claim", any claim or right of action which a Creditor may have