Indigo Partners Reconsiders WOW Purchase Skip to content
WOW air
Photo: Golli.

Indigo Partners Reconsiders WOW Purchase

WOW has restarted formal negotiations with Indigo Partners and other potential buyers, Vísir reports. The airline announced yesterday that its creditors had agreed to convert the company’s debt into share capital and issue new priority shares, giving WOW a shot at continuing operations and avoiding bankruptcy.

Low-cost airline company Indigo Partners had made a temporary agreement to invest in WOW air last November. The two parties were in negotiations for some two months before Indigo pulled out. Brief negotiations with Icelandair last weekend proved unsuccessful for WOW, and Vísir’s sources report that Indigo Partners is again considering an investment in the airline.

If WOW’s representatives achieve their reorganisation plan for the airline, its liquidity is expected to be positive by more than ISK 1.1 billion ($9m/€8m) by the middle of next year. It is currently at a deficit of USD 11 million and is expected to worsen to a deficit of USD 45 million by the second quarter of 2019.

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