It’s been a bad few days for WOW Air, who have had both Indigo Partners walk away, and have had Icelandair walk away too.
WOW and Icelandair re-started discussions on the 21st March, to have them halted on the 24th March, with one of the simplest press releases ever.
WOW announced that a majority their Bond Holders and other creditors of WOW air are in advance discussions with the aim of reaching an agreement on a voluntary restructuring including an agreement of converting current debt into equity and fund the company towards long-term sustainability, with a further statement expected soon.
However, on the ground – things aren’t so good with reports that services are being cancelled today – an unwelcome sign at this stage of the game
What next for WOW?
A good question. Whilst WOW Air could tap its investors for more money, with both Indigo and Icelandair walking away… I wouldn’t hold out much hope right now.
A lot will depend if the bondholders want to swap more debt for equity, or if another investor can be parachuted in.
If you’re a WOW Passenger, I would, however, be looking to make alternative plans… just in case.
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