Scandinavian airline SAS gets U.S. court approval for $700 million financing

(Reuters) – Bankrupt Scandinavian airline SAS AB on Friday stated it has acquired U.S. court docket approval for $700 million of debtor-in-possession (DIP) financing from funds managed by non-public fairness agency Apollo World Administration.

The accredited credit score settlement is part of the airline’s chapter safety course of and its phrases shall be considerably just like these introduced on Aug. 14, SAS stated.

Lengthy-struggling SAS, ravaged by the pandemic and pressured by low-cost rivals, sought chapter safety in July as pilots went on a two-week strike, hoping to emerge inside 9 to 12 months as a extra aggressive airline.

Some analysts have stated that Apollo might develop into a significant shareholder in SAS by changing the mortgage to fairness on the finish of the Chapter 11 course of.

(Reporting by Jyoti Narayan in Bengaluru; Modifying by Devika Syamnath)