SAS has agreed to a restructuring deal worth nearly $1.2 billion that will allow the carrier to exit Chapter 11 bankruptcy, the carrier announced Tuesday. The package includes funding from Air France-KLM, investment firm Castlelake, Lind Invest and the Danish government. The carrier filed for bankruptcy in the United States in July 2022.
Air France-KLM will have up to a 19.9 percent equity stake in SAS, with Castlelake holding about 32 percent, the Danish state 25.8 percent and Lind approximately 8.6 percent. The remaining equity will be distributed among and held by creditors who may receive recovery in equity. The proposal is subject to certain conditions and regulatory approvals, including by the European Commission, the U.S. court overseeing the Chapter 11 reorganization and the Swedish court.
As part of the transaction, SAS eventually will join the SkyTeam Alliance, of which Air France-KLM is a founding member, and depart the Star Alliance, subject to relevant approvals and emergence from the Chapter 11 process, according to the carrier. SAS also plans to “seek to establish a commercial cooperation with Air France-KLM and its airlines.”
SAS will continue to operate throughout the implementation of the transaction, the closing date of which is as yet undetermined.
