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Iceland's loss-making carrier WOW Air said it was in talks to restructure its debt after Icelandair ended brief negotiations aimed at buying a stake in the no-frills airline.
"Icelandair Group has decided that its possible involvement in WOW Air's operations ... will not materialise. Therefore, all discussions between the parties have been cancelled," it said in a statement late Sunday, just days after the talks opened last week.
Icelandair - Executive - Bogi - Nils - Bogason
Icelandair chief executive Bogi Nils Bogason told the Frettabladid newspaper that the "financial situation and operations were such that we saw no reason to continue" the talks.
"We were seeking a long-term commitment, not just a way to resolve the short-term problems. Once we began examining the case and possible scenarios, we decided to end the talks."
WOW - Majority - WOW - Air - Bond
Subsequently, WOW said "a majority of WOW Air bond holders and other creditors of WOW Air are in advance discussions with the aim of reaching an agreement on a voluntary restructuring."
That included "an agreement of converting current debt into equity" to fund "the company towards long term sustainability."
Frettabladid - WOW - Air - Need - Company
According to Frettabladid, WOW Air is reportedly in need of $42 million to save the company.
WOW has been struggling for...
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