Icelandair Gets Green Light to Increase Share Capital

Vala Hafstað

At a meeting Friday, Icelandair Group hf.’s shareholders voted to grant the board authorization to increase the company’s share capital by up to ISK 30 billion (USD 209 million; EUR 191 million), Morgunblaðið reports.

New shares will be issued at a public offering with the aim of securing the company’s continued operation in face of the COVID-19 pandemic.

The plan is to increase share capital by ISK 22 to 29 billion June 29-July 2.

Before the public offering takes place, certain conditions must be met to reduce uncertainty. The goal is to finalize agreements with numerous parties by June 15, including agreements with authorities regarding the security of loans, with creditors, lessors and sellers, as well as with Boeing regarding the 737 MAX jets, grounded since March 12 of last year.

Wage agreements have been signed with pilots and air mechanics, while negotiations with flight attendants are still ongoing. “I believe we’ll be able to reach an agreement with flight attendants in the coming days,” Bogi Nils Bogason, CEO of Icelandair, stated at the shareholders’ meeting.

Úlfar Steindórsson, Icelandair board chairman believes all these agreements will be reached. He is optimistic regarding the public offering. “I know what this company represents and its value,” he states. “Once this is presented to potential investors, I’m convinced they’ll see they same picture as I see.”

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