A reconstruction plan for Norwegian Air in Norway has won the green light.
The “milestone” approval by the Olso County Court means that both the airline’s revamp processes in Ireland and Norway have been approved by the courts.
The carrier, which has been reduced to flying skeleton domestic services after abandoning all low cost long-haul operations, will now prepare the process of raising new capital.
Norwegian Air suffered a 94% slump in passenger numbers last month against March last year.
The court reached a positive conclusion after creditors approved the reorganisation plan in a reconciliation period that ended on April 9.
The rulings in both Ireland and Norway become final when the planned equity has been obtained.
The capital raise is expected to be completed during May.
Chief executive Jacob Schram said: “We are very pleased with this important positive decision by the court.
“Once we have passed these two biggest legal milestones we can look forward to continuing the work of raising new equity.”
He added: “I stand very proud of the achievements that Norwegian has accomplished throughout this period and I am grateful to work alongside so many colleagues that have shown such unwavering commitment and determination for us to succeed.
“At the same time, I wish to recognise the crucial support that we have received which has enabled us to continue our business.”