SAS Scandinavian Airlines is expected to emerge from Chapter 11 bankruptcy protection by mid-2024 after receiving approval from the US Bankruptcy Court. The restructuring plan still needs to meet several conditions, including regulatory approvals and restructuring SAS AB at the Swedish company level.
Subordinated creditors and current SAS shareholders will not see any returns as common shares and commercial hybrid bonds are set for cancellation, redemption, and delisting as the airline exits restructuring.
The Chapter 11 process was initiated voluntarily to accelerate SAS Forward, a business transformation strategy involving agreements with key stakeholders, debt restructuring, fleet reconfiguration, and a significant capital injection. SAS restructured leases with 15 lessors, expecting annual cost savings of at least SEK1bn kronor (€88m).
A new owner consortium comprising Castlelake, Air France-KLM, Lind Invest, and the Danish state will invest €1.1bn in the reorganized airline, with creditors overwhelmingly supporting the exit plan. SAS President and CEO Anko van der Werff expressed confidence that the restructuring plan will lead to a financially stronger and competitive airline.
