SAS Given Green Light for Equity Solicitation Process
SAS Scandinavian Airlines (SK) has been given the green light to commence equity solicitation procedures.
SAS Scandinavian Airlines (SK) has been given the green light to commence equity solicitation procedures.
DALLAS - SAS Scandinavian Airlines (SK) has been given the green light to commence equity solicitation procedures. This will allow it to raise much-needed funds and is the "key next step" in its 'SAS Forward' restructuring program.
Court approval for the process was submitted in April, and the airline said it hoped it would "help drive the airline forward and facilitate [our] emergence from the Chapter 11 process."
SAS has been under US Chapter 11 bankruptcy protection since July 2022, and the Bankruptcy Court approved the Southern District of New York on Monday, May 15. The court will now ensure that the best terms and conditions can be obtained.
Investors will now have around 13 weeks to bid. SAS hopes to raise around SEK9.5bn (US$916m) in capital. The restructuring process should also ensure that its debts are reduced or converted to approximately SEK20bn (US$1.9bn). The final amount of equity will depend on the bidding process and any additional liquidity that can be raised.
The airline's CEO, Anko van der Werff, said, "We will conduct 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."
SK first launched its 'SAS Forward' process in February 2022. It has seen a restructuring of its fleet, sorting new contracts with 15 of its lessors covering 59 airframes. SAS has also renegotiated collective labor agreements with its pilots and flight attendants. This has seen its costs cut by SEK7.5bn (US$725m).
https://airwaysmag.com/sas-returns-to-africa/
Featured Image: SAS (OY-KBH) Airbus A321-232. Photo: Alberto Cucini/Airways.
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