SAS avoids bankruptcy
US court approves company rescue procedure
The cut in handling services at airports, the protest of its pilots, the concern of shareholders. More than a year after the announcement of the imminent bankruptcy, in the absence of a serious recapitalization plan, the carrier Scandinavian Airlines has now received approval on the rescue of the airline from a US bankruptcy court.
Avoiding the company's bankruptcy will cost 1.2 billion euros. Around 900 million were needed in 2022 to recapitalize the airline, but in this period the situation has worsened. Now, however, thanks to an agreement with a consortium formed by the Castlelake and Lind Invest funds, the Danish State and the Air France-KLM Group, Scandinavian Airlines will be able to continue flying. The final decision is expected in mid-June 2024.
The agreement provides, as announced last October, that the Castlelake investment fund would acquire a share of approximately 32% of Scandinavian, while Air France-KLM 20%, and finally Denmark will hold 26% of capital in its hands. Investments of one billion euros are expected in the reorganization of the company.
AVIONEWS - World Aeronautical Press Agency