SAS Scandinavian Airlines is moving closer to exiting bankruptcy protection, with the Stockholm District Court approving its reorganisation plan in Sweden.
The reorganisation in Sweden is a crucial step for SAS’s overall turnaround plan, approved during its Chapter 11 process in the US, with the company anticipating emerging from restructuring in August 2024, pending regulatory approvals and a three-week appeal period.
As part of the reorganisation plan, existing shares and listed commercial hybrid bonds of SAS will be redeemed and cancelled, with new unlisted shares to be issued to the new owner consortium.
The recovery plan also includes changes to SAS’s capital structure, such as issuing new shares, redeeming existing shares without consideration, a bonus issue, and new owners investing in secured convertible debt. Holders of commercial hybrid bonds will receive distributions under the reorganisation plan.
