Icelandair Group and its largest lenders, Íslandsbanki and Glitnir Bank, reached (25-Mar-2010) an agreement on the financial restructuring of the group. The restructuring will also involve other creditors, in addition to Icelandair Group's aircraft lessors. Shareholder approval will be needed for certain aspects of the restructuring, in addition to the final approval of creditors. None of the group's debts will be written off. Details include:
- Loans: Domestic creditors to convert loans of approximately EUR27.7 million into shares;
- Debt: Debts of EUR45.5 million, together with an equal value of assets, to be transferred to a separate holding company to be owned by Icelandic creditors;
- Assets: Icelandair Group will retain assets related to its core operations: Icelandair, Air Iceland, Iceland Travel (Vita), Icelandair Cargo, Icelandair Hotels, Icelandair Ground Services, Loftleidir-Icelandic and Fjárvakur, in addition to the Latvian air charter company, SmartLynx, which is scheduled for divestment this year;
- Share offering: Icelandair Group also plans to conduct a two-stage share offering later this year, open to investors and the public. Both offers will be carried out though Íslandsbanki.
- Stage I: Restricted tender available to a limited group of professional investors;
- Stage II: Public offering to broaden the investor base.
- 2010 financial projections:
- Revenue (core operations): EUR420.8 million, +4.0% year-on-year;
- EBITDA: EUR42.9 million, +6.2%; [more]