-
SAS
- IATA/ICAO Code:
- SK/SAS
- Airline Kind:
- Full Service Service
- Hub(s):
- Copenhagen Airport, Oslo Gardermoen Airport, Stockholm Arlanda Airport
- Yr Based:
- 1946
- Alliance:
- Star Alliance
- Airline Group:
- SAS Group
- CEO:
- Anko van der Werff
Scandinavian Flag provider SAS has formally secured the funding essential to proceed operations because it seeks to return to profitability. Scandinavian Airways System, often known as SAS, was accredited by the US Chapter Court docket for the Southern District of New York for USD 700 million (7.0 billion Swedish Krones) of financing.
The phrases of the debtor-in-possession (DIP) settlement are considerably much like the phrases beforehand introduced by SAS on August 14, 2022, with the financing credit score settlement managed by Apollo International Administration. The airline filed for Chapter 11 chapter safety within the US earlier this yr in a transfer to proceed its operations whereas restructuring its debt obligation.
The DIP financing, which the courts have now accredited, is a specialised kind of bridge financing used at the side of the income generated from SAS’s ongoing operations to allow the provider to proceed assembly its obligations all through the Chapter 11 course of. Anko van der Werff, President and Chief Government Officer of SAS, defined how the brand new inflow of money would assist the airline transfer ahead:
“With the Court docket’s approval of our DIP financing, we’re making essential progress in our chapter 11 course of. The DIP financing settlement with Apollo adopted an in depth and aggressive course of that we performed to realize one of the best financing end result for SAS, and we’re happy that the Court docket has accredited it.”
“I’d prefer to thank our staff for his or her laborious work and dedication, in addition to our enterprise companions for his or her help as we proceed shifting by this course of.”
The financing will allow the provider to proceed operations. Picture: Getty Photos
The airline additionally lately introduced that it carried virtually two million passengers over the month of August.
The backstory and chapter course of.
The Star Alliance provider predicts that the chapter course of will take between 9 and twelve months. Because the courtroom has now accredited the financing settlement, an preliminary $350 million will quickly develop into accessible for SAS to make use of for continued operations. The courtroom indicated Friday within the ruling that it’s going to enter an order approving the DIP financing shortly.
SAS introduced in July that it had voluntarily filed for Chapter 11 chapter safety in america. The well-established and versatile authorized framework permits for restructuring companies with operations in a number of jurisdictions. As SAS has substantial operations within the US, it was eligible for the method, designed to succeed in agreements with vital stakeholders, restructure the corporate’s debt obligations, and obtain a capital injection.
Uncover extra airline information right here.
The authorized transfer includes a part of the provider’s “SAS FORWARD” plan to lift new capital, cut back or convert greater than SEK 20 billion ($1.87 billion) of debt into widespread fairness, and streamline its fleet. The airline has already begun the restructuring course of after being knowledgeable that each the Swedish and Norwegian Governments would convert present debt to fairness as an alternative of injecting more money into the airline.
SAS filed this previous week to return ten plane to lessors to assist cut back prices. The planes in query comprise three Airbus A320neos, three Airbus A330-300s, two Airbus A350-900s, one Airbus A321, and a Boeing 737-700.
The airline expects to finish the restructuring course of inside a yr. Picture: Tom Boon | Easy Flying
Different worldwide carriers with operations within the US, together with Avianca, LATAM, Aeromexico, and Philippine Airways, have equally used the Chapter 11 chapter course of to restructure debt and lift capital for continued operations. SAS expects to finish its court-supervised course of inside the yr. Avianca took a yr and a half, whereas Aeromexico took virtually two years to emerge from the method.
