SAS Scandinavian Airlines Progresses in Chapter 11 Restructuring

SAS Scandinavian Airlines embarked on a Chapter 11 bankruptcy protection journey on July 5, 2022, with a strategic plan to expedite its transformation, reconfigure its aircraft fleet, and address its debt obligations. This move aimed to infuse the airline with substantial capital to secure its future. Despite the filing, SAS ensured uninterrupted operations and continued serving its passengers as usual.

The airline secured a substantial $700 million in financing to bolster its operations throughout the Chapter 11 restructuring process. This financial support played a crucial role in maintaining its flight schedules and customer service.

As part of its restructuring efforts, SAS initiated an equity solicitation process, ultimately selecting a consortium consisting of Castlelake, Air France-KLM, and Lind Invest as the winners. This consortium is set to take control of a majority stake in SAS, amounting to 60.5 percent, while the existing shareholders will retain the remaining 39.5 percent.

However, the completion of this transaction is contingent on meeting various conditions and receiving approvals from creditors and the bankruptcy court. The process began in May and concluded on September 25, signaling a significant step toward SAS Scandinavian Airlines’ financial recovery and transformation.

SAS Scandinavian Airlines continues to navigate its Chapter 11 restructuring, demonstrating its commitment to emerging as a stronger and more resilient airline in the future.

Sources: AirGuide Business airguide.info, msn.com, aerotime.aero, cases.ra.kroll.com