The AF/KLM takeover of SAS Scandinavian Airlines cleared another hurdle when the deal obtained bankruptcy court approval in the US for a USD1.2bn investment agreement.
The agreement involves a consortium consisting of Castlelake, Air France-KLM, Lind Invest, and the Danish state.
The court has also approved a debtor-in-possession financing credit agreement with Castlelake for USD500m, which will be used to refinance SAS’s original loan.
SAS is looking to gain court approval for its Chapter 11 plan in early 2024, followed by regulatory approvals and a Swedish company reorganization. Existing shareholders are not expected to require approval, and SAS AB’s shares and commercial hybrid bonds are likely to be cancelled, redeemed, and delisted in the second quarter of 2024.
