NORSE ATLANTIC ASA – RESULTS OF WRITTEN RESOLUTION

Bondholders have approved and adopted proposed amendments to the bond terms via a written resolution dated 14 April 2026. The announcement is procedural and provides no financial magnitude, pricing, or operational update. Market impact should be limited, with the main relevance centered on the company’s debt structure and bondholder governance process.

Analysis

This is less about the headline act of getting consent and more about the signaling value: the capital structure is now visibly mutable, which usually compresses the probability-weighted path to a cleaner restructuring. For unsecureds, that is a mixed outcome in the short term — you remove near-term brinkmanship risk, but you also increase the chance that management can keep the issuer alive longer via incremental term relaxations rather than a hard reset. That tends to favor the equity only if the amendments buy enough runway to bridge to operating improvement; otherwise it simply shifts value from bondholders to enterprise creditors without fixing the underlying burn.

The second-order effect is on negotiating leverage across the creditor stack. Once one amendment passes, future asks become easier, so recovery assumptions should be marked down for the weakest maturity buckets first, then watched for contagion into other instruments if performance disappoints over the next 1-2 quarters. Competitors can benefit if the issuer’s flexibility translates into price discounting or capacity retention, because a stressed carrier with more room to operate can still compete aggressively on fare and schedule, even while remaining structurally impaired.

The key catalyst from here is execution, not documentation: within 30-90 days, the market will care whether this was a one-time technical fix or the first step in a broader liability management exercise. A reversal would require demonstrable cash flow stabilization and no further amendment requests; absent that, spreads on the issuer’s paper likely remain rangebound-to-wider as investors price in repeated coercive optionality. The contrarian view is that the market may be underestimating how quickly bondholder fatigue can turn into capitulation, which can actually improve the odds of a more decisive solution later, but only after another leg of dilution for creditors.

Key Decisions for Investors

• Avoid chasing the bond rally immediately; wait 1-2 weeks for post-vote liquidity to normalize, then look for better entry only if amended terms clearly reduce near-term default risk.
• If holding the issuer's unsecureds, rotate out of the shortest-dated / most amendment-exposed paper into longer-dated bonds only if they trade 2-4 pts cheap to the curve, since those should benefit more from any runway extension.
• Use any strength in the issuer's equity as an opportunity to fade unless the next quarter shows measurable cash burn improvement; the amendment is a financing stopgap, not an operating inflection.
• For relative value, favor long the amended issuer's higher-quality peers' bonds against short the issuer's nearest comp in the same sector if spreads tighten excessively, betting that repeated liability management raises funding costs for the weakest name.