The company gave itself a deadline of 4.30pm on Tuesday, but they were unable to raise enough money by then. Flyr has not succeeded in raising NOK 430 million in a crisis issue, the company reports in a stock exchange announcement. The investors have come up with a proposal for an alternative structure in the company. This proposal is now being assessed by the board of the company. – We do not know whether they think it is a good proposal, or what happens with it, but we have given constructive feedback, says Flyr’s third largest shareholder Jan Petter Sissener to news. New deadline Wednesday morning The board will now assess the alternative transaction structure, and plans to come back with an updated announcement before Oslo Børs opens tomorrow morning, the stock exchange announcement states. Communications director Anita Svanes writes in an SMS to news that Flyr will not comment on the stock market announcement until after the board meeting. Flyr’s flights will continue to operate as normal until further notice. Last week, Flyr announced that they lost NOK 430 million in the third quarter of the year. The issue was announced at a price of 1 øre per share, while the price on Oslo Børs fluctuated around 8–10 øre during Tuesday. – We had a review of the company and some figures and some assumptions before today, and we did not think it was attractive enough for our shareholders, so we have gone back with a proposal that we think is good enough for our shareholders, says Sissener to news. – A lot is happening The company’s largest owner and founder Erik Braathen has put in new millions, but it is not enough. – There is so much happening now, there is so much news out there about the company. We are working what we can now, said a tight-lipped Erik Braathen to news when we called him this morning. In addition to being the founder and largest owner, Braathen is also chairman of the company’s board. Crisis issue means that a company tries to find fresh money in the market to save the company, this happens through the issue of new shares at a set price. It is the fourth time the company has had to raise new equity capital. On Tuesday morning, Erik Braathen was the only investor who had injected money into the crisis issue, he has put NOK 10 million into the issue. Leasing aircraft At the same time, it became known that Flyr has entered into an agreement on the leasing of aircraft with another airline. An unnamed European airline has signed a letter of intent to lease an aircraft with crew from Flyr, and is considering leasing one more aircraft, Flyr reports via Oslo Børs’ website. GET MONEY IN: Flyr has entered into an agreement of intent to lease aircraft to another unnamed company in order to solve some of the money crunch the company is in. Photo: Simon Skjelvik Brandseth / news The agreement is valid for nine months and starts in February. Airlines lease planes because they are trying to avoid bankruptcy. Currently, the company has five or six aircraft in operation and twelve aircraft in the fleet, and Flysmart24 writes that they want to rent out all the aircraft that are not used with crew. Without the new money that the crisis issue can provide, the future of the company is uncertain. Fateful day This morning there was a meeting between Flyr’s management and major owner Jan Petter Sissener. After the meeting, Sissener says that he still hasn’t made up his mind. – Now, together with my people at Sissener Canopus, I want to decide whether we want to participate in the issue, said Jan Petter Sissener to news. CRISIS MEETING: Flyr’s third largest shareholder Jan Petter Sissener sits in meetings with the company’s management on Tuesday morning to gain insight into the company’s situation Photo: Margret Helland / news Sissener emphasizes that Flyr is a good company with good products and satisfied passengers. – But they have not succeeded financially, he points out. Sissener believes that Flyr needs more than NOK 430 million in new capital, and believes that the need is instead NOK 600 million. He has proposed a new financing model to the company. ON THE GROUND: It is a fateful day for Flyr’s employees. Photo: Bjarte Johannesen / news The Flyr share has risen almost 70 per cent on Oslo Børs since the announcement of the share issue. Flyr reported an operating profit of minus NOK 279 million in August, and with this the share price plummeted. Since August, Flyr’s share price has continued to plummet, and the company’s market value has been shaved off by several hundred million kroner. The company took off in 2021.
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