OSLO (Reuters) - Norwegian Air's shareholders voted on Thursday in favour of the company's first dividend payout since its inception 30 years ago, but may have to wait until 2026 before they receive any cash.
Founded in 1993 and reconstructed through bankruptcy proceedings in 2021, Norwegian Air has turned healthy profits since COVID era travel restrictions ended and has amassed a cash pile of more than 9 billion Norwegian crowns ($870 million).
The budget carrier in August said it eventually hoped to make dividend payments, and shareholders on Thursday gave the board a green light to pay 0.25 crowns per share for the 2022 accounting year, equivalent to about 240 million crowns.
But holders of debt raised during the pandemic era when Norwegian Air was on the brink of collapse, including Norway's government, have a veto on dividend payments until 2026 and so can block payouts.
The Norwegian Ministry of Trade and Industry did not immediately respond to a request for comment.
If creditors do not give permission for dividend payments by the time of the next annual general meeting in May 2024, the board will create a fund to set aside the amounts that otherwise would have been distributed, the carrier said.
Payments to shareholders may thus be delayed until September 2026 when the pandemic era debts are due to be repaid.
($1 = 10.3103 Norwegian crowns)