Wow Air says bondholders have approved a deal to convert their bonds into equity, opening a route for the troubled airline to hold talks with investors about funding the company.
The Icelandic low-cost carrier has faced months of uncertainty after Icelandair backed out of take-over talks in November 2018. Indigo Partners subsequently expressed interest in buying the airline, but discussions broke down last week and Icelandair started talks but abandoned them again days later.
Wow Air was negotiating with bondholders and creditors on a voluntary financial restructuring.
Announcing the successful transformation of bonds into equity, Wow Air said: “This is an important milestone in financially restructuring the company and securing the long-term sustainability of Wow Air.”