A financial revamp plan for Norwegian Air was sent to its creditors and shareholders today.

The carrier hopes continue the reconstruction processes and initiate a capital raise in April, targeting completion in May if the scheme is agreed by Irish and Norwegian courts in the coming weeks.

Chief executive Jacob Schram said: “We have had many constructive and challenging negotiations with creditors since the indicative plan was presented on January 14.

“The Examiner in Ireland and the Reconstructor in Norway both believe that this plan is in the interest of the creditors and shareholders of the company.

“This is an important milestone in the process of securing Norwegian’s future.”

The Examiner in Ireland will firstly present formal proposals for the restructuring based on the plan presented to the creditors of the company.

Following necessary creditor meetings the proposals will then be presented to the Irish High Court for approval.

The proposals outline how creditors will be dealt with in the actual reconstruction of the budget carrier which has been operating a skeleton fleet of aircraft on domestic routes in Norway after dropping all long-haul flights.

Unsecured creditors who will not participate in the planned capital raise, will be entitled to cash and a dividend totalling to around five per cent.

The dividend claims may be converted to shares, in total representing approximately 25% of the airline’s share capital following the restructuring.

New investors in the capital raise will receive approximately 70% of the post-restructuring share capital, and current shareholders approximately five per cent.

Norwegian has sought to identify solutions to refund a “small share” of customers with claims from prior to entering the examinership on November 18.

Approximately 98% of refund claims booked directly with Norwegian were refunded before the start of the reconstruction process.

But the airline said: “Despite discussions with the Examiner and Reconstructor, it has unfortunately proven impossible to allow the reimbursement of the outstanding refund claims to customers due to the principles of the restructuring processes.”

Chief financial officer Geir Karlsen said: “We have wanted to ensure full refunding of outstanding claims  throughout the reconstruction, and we are sorry that  this will not be possible.”

He added: “It is hoped that the Irish High Court will make their final decision within the next couple of weeks.

“If approved by the Irish court, the plan will be dealt within the reconstruction process in Norway. If everything goes according to plan, we will be able to carry out the capital raise in May.”