SAS Defers Use of Second Part of US$700m Loan
Buoyed by better-than-expected recent financial results, SAS has announced it will not use the second part of its US$700m loan.
Buoyed by better-than-expected recent financial results, SAS has announced it will not use the second part of its US$700m loan.
DALLAS - SAS Scandinavian Airlines (SK) has said it will no longer be using the second part of its US$700m debtor-in-possession (DIP) loan during the second quarter of 2022/2023, as previously stated. This follows a 'stronger than expected development of SAS's liquid position during the winter.'
An official statement released by the airline said that it may, 'depending on the continued development of SAS's liquidity position, continue discussions with Apollo Global Management to gain access to the second part of the DIP loan at a later stage during the chapter 11 process.'
SAS will now look at ways to improve its financial position through 'other financing initiatives within the framework of ongoing operations.' This follows the recent announcement of its 'competitive and broad capital raising process' in which it plans to raise at least SEK9.5bn (US$911m). This could allow the airline to improve its liquidity sufficiently to avoid using the second part of the loan in the short term.
The two-part loan was agreed upon with Apollo on August 14, 2022, as part of its Chapter 11 process. The first half was used in September 2022.
SAS hopes to complete the Chapter 11 process towards the end of the second half of 2023.
https://airwaysmag.com/sas-court-approval-to-raise-equity/
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