SAS secures $700 million financing to aid restructuring

(Reuters) – Scandinavian airline SAS mentioned on Saturday it entered into an settlement with Apollo International Administration to boost $700 million of contemporary financing it must see it by means of chapter.

The airline filed for chapter safety in the US in early July to assist lower debt after the collapse of wage talks between the airline and its pilots, triggering a 15-day strike that added to journey chaos throughout Europe.

SAS mentioned in an announcement it expects to finish the Chapter 11 restructuring course of in 9 to 12 months. The airline anticipates receiving courtroom approval for its $700 million financing by the tip of September.

SAS chief govt Anko van der Werff has mentioned the strike accelerated its choice to file for Chapter 11 standing.

The airline has mentioned the economic motion had value it greater than $145 million, affecting 380,000 passengers within the peak summer time journey season, and would possibly jeopardize the agency’s means to safe further financing.

SAS grounded some 3,700 flights throughout the strike, saying final week its variety of passengers fell 32% in July from June and capability by 23%.

Swedish, Danish and Norwegian pilot union members, who voted to undertake a collective bargaining settlement reached with SAS final month, say they won’t resume their strike.

SAS, which was already loss-making earlier than the pandemic resulting from rising competitors from low-cost carriers, had mentioned it wanted to slash prices additional and lift extra capital to outlive.

Whereas the Swedish authorities has rejected the plea for additional cash, Denmark says it would inject contemporary funds if SAS additionally finds assist from private-sector traders.

(Reporting by Mrinmay Dey in Bengaluru; Enhancing by William Mallard)