Embattled Norwegian (DY, Oslo Gardermoen) has secured the support it needed for its rescue plan from shareholders, lessors, and bondholders, giving the green light to a USD1.2 billion scheme to convert debt into equity.

Norwegian’s shareholders gave their backing to the survival plan at a virtual extraordinary general meeting on the morning of May 4, with more than 95% of votes cast and more than 95% of these supporting the proposal, according to the business newspaper Dagens Naeringsliv.

As previously reported, the plan will hand majority ownership to the airline’s creditors, leaving existing shareholders with only 5.2% of the company. CEO Jacob Schram had told Norway’s TV2: “Without a yes [from shareholders], it will be game over.”

The debt-to-equity swap will give 53.1% majority ownership in the company to its lessors, while bondholders will own 41.7%.

On May 3, bondholders voted to accept the strategy that will convert up to USD1.2 billion worth of debt into equity - a prerequisite for Norwegian to access a NOK2.7 billion kroner (USD257 million) state bailout - although in an earlier vote on May 1 they rejected it.

Enough of the biggest holders of unsecured bond NAS07 changed their minds when the airline improved some of the terms.

And the lessors, who own much of Norwegian’s fleet, also signed up to the plan, in which they will take equity in the company instead of pursuing debts, the airline said.

The ch-aviation fleets advanced module shows that 23 lessors own 79 aircraft in the fleets of Norwegian and its subsidiaries Norwegian Air Sweden, Ireland's Norwegian Air International, Norwegian UK, and Norwegian Air Argentina. The companies also possess 69 of their own aircraft.