SAS Scandinavian Completes Restructuring with New Ownership and Financing
SAS Scandinavian Airlines has successfully concluded its restructuring process, emerging revitalized from Chapter 11 bankruptcy in the United States and a Swedish company reorganization. The airline announced on August 28 that it secured substantial exit financing of USD 1.2 billion, facilitated by a new consortium of owners including Castlelake, Air France-KLM, Lind Invest ApS, and the Danish state, which now collectively hold an 86.4% stake in SAS AB.
The restructuring has enabled SAS to reduce its debt by over USD 2 billion, streamline its fleet, and secure crucial agreements with stakeholders. The exit financing package consists of USD 475 million in new unlisted equity and USD 725 million in secured convertible debt. Air France-KLM, a significant stakeholder in the consortium, acquired a 19.9% share in SAS, investing USD 144.5 million in common shares and senior secured convertible notes. This arrangement also includes provisions for Air France-KLM to potentially increase its stake to a controlling interest in the future, depending on regulatory conditions and financial performance.
A key leadership change accompanies this restructuring, with Kåre Schultz appointed as the new chairman of SAS, succeeding Carsten Dilling. Schultz will lead a newly formed ten-member board. The restructuring plan received overwhelming support from creditors, with distributions of cash, equity, or contingent value notes expected to commence within the next month.
SAS President and CEO Anko van der Werff emphasized the importance of this milestone, stating, “This is a historic day that marks the start of an exciting future for SAS’s customers, partners, and colleagues. We are now entering a new era focused on completing our transformation and advancing our commitment to net-zero emissions by 2050.”
Additionally, SAS has established new partnerships with Air France-KLM, including interline and codeshare agreements effective from September 1, coinciding with SAS’s integration into the Skyteam alliance. These partnerships are set to enhance network connectivity and offer reciprocal loyalty program benefits, further supporting SAS’s strategic goals following its restructuring.
Related news: https://airguide.info/?s=SAS+Scandinavian
Sources: AirGuide Business airguide.info, bing.com, SAS Scandinavian, Castlelake