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DALLAS - SAS Scandinavian Airlines (SK) has announced that it has commenced steps to raise additional equity. This forms part of the troubled carrier's latest restructuring under Chapter 11 bankruptcy protection.
As part of its SAS Forward' business transformation plan,' the airline had previously said it aimed to raise at least SEK9.5bn (US$911m). Now SK has said that the final amount "will depend upon the competitive equity raise process along with the Company's ongoing ability to generate additional liquidity."
Seeking Approval
SAS will now file a motion with the U.S. Bankruptcy Court for the Southern District of New York to seek approval for the equity process.
In an official statement, the airline said, "Through these procedures, SAS will run a competitive and broad solicitation process to secure the best available terms and conditions for new equity capital.
"Potential investors can place bids to take a lead position or be paired with other investors in acquiring equity interests of the reorganized SAS. SAS will continue to operate the business and serve its customers as usual throughout this process."
The finances raised through the process will be used to reduce its SEK9bn (US$1.9bn) of debt. It will also be used to provide SAS with the necessary funds to continue operations.
CEO Statements
Anko van der Werff, President and Chief Executive Officer of SAS, said, "With the equity raise process we are initiating today, we are taking the key next step in SAS FORWARD, our transformation plan that aims to improve our financial strength, secure long-term competitiveness and fortify our position as Scandinavia's leading airline.
"We will commence a competitive and broad solicitation process to secure equity capital that will help drive our airline forward and facilitate our emergence from the Chapter 11 process."
https://airwaysmag.com/sas-new-routes-for-summer-2023/
Featured Image: SAS Airbus A350. Photo: Fabrizio Spicuglia/Airways.
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