SAS Scandinavian Secures Court Approval for $1.2 Billion Consortium Funding from AF-KLM and More
SAS Scandinavian Airlines (SK, Copenhagen Kastrup) has achieved a significant milestone in its financial restructuring journey, receiving bankruptcy court approval in the United States for a substantial USD1.2 billion investment agreement with a consortium that includes Castlelake, Air France-KLM, Lind Invest, and the Danish state.
The US Bankruptcy Court for the Southern District of New York greenlit SAS’s entry into the investment agreement with the winning consortium as part of the airline’s Chapter 11 exit financing solicitation process. This agreement, entered into earlier this month, reflects SAS’s efforts to secure the necessary funding for its financial recovery.
In addition to the consortium funding, SAS obtained final court approval for a new debtor-in-possession financing credit agreement with Castlelake, amounting to USD500 million. This funding will serve various purposes, including refinancing SAS’s original DIP term loan from Apollo Global Management. Notably, the court had previously approved a USD450 million loan from Castlelake just ten days ago.
Anko van der Werff, SAS’s President and CEO, expressed confidence in the airline’s future, stating, “The investment agreement that was approved by the court today… shows that our new investors believe in SAS and our potential to remain at the forefront of the airline industry for years to come.”
Looking ahead, SAS aims to receive court approval of its Chapter 11 plan in early 2024, with subsequent steps including regulatory approvals and the implementation of a Swedish company reorganisation (företagsrekonstruktion), likely to be filed by SAS AB in 2024. The process is expected to result in the cancellation, redemption, and delisting of all SAS AB’s common shares and listed commercial hybrid bonds during the second quarter of 2024, with no approval anticipated from existing shareholders. Stay tuned for updates as SAS progresses through its restructuring efforts.