Struggling Icelandic carrier WOW Air has received a lifeline from bondholders, avoiding a default, and keeping the company in the air for the time being.
WOW’s bondholders have agreed to convert their debt into an ownership position, giving the ultra low-cost carrier some much-needed financial breathing room. They will reportedly take a 49% stake in the company.
WOW is not out of the woods, as it also turns to investors who own 51% of the company for a cash infusion.
“This is an important milestone in financially restructuring the company and secure the long-term sustainability of WOW air,” the company said in a statement.