(Adds share price)
OSLO, Jan 30 (Reuters) - Loss-making Norwegian airline
Flyr said on Monday it had failed to raise the cash it
needs from shareholders and other potential investors, leaving
it in a "critical short-term liquidity situation".
Flyr's share price, already weakened by the budget carrier's
financial woes, fell 78% in early trade to an all-time low of
0.0015 Norwegian crowns.
While the board continues to explore "feasible
alternatives" to secure its continued operation, the potential
solutions could wipe out the remaining value of its existing
shareholders, the carrier said in a statement.
Flyr in November said raising cash was vital for the company
to survive the winter season and prepare for a ramp-up in spring
and summer of 2023, but it was only able to raise about half the
required cash at the time.
The company said it had tried in recent days to secure
funding of 330 million Norwegian crowns ($33.27 million) but the
effort failed.
"Market conditions and continued uncertainty with regards to
airline travel and earnings through 2023 have deterred investors
from committing capital for the required period of time," Flyr
said.
The company, whose rivals include Norwegian Air and
SAS , said on Oct. 4 it would make heavy spending cuts
to preserve cash during the winter, including furloughs, and put
non-profitable routes on hold.
($1 = 9.9175 Norwegian crowns)
(Reporting by Terje Solsvik, Editing by Louise Heavens and
Christina Fincher)
Messaging: terje.solsvik.thomsonreuters.com@reuters.net))
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