Scandinavian airline SAS has emerged from its Chapter 11 bankruptcy proceedings in the US after restructuring more than $2bn in debt and entering a “new era” for the carrier.
The announcement comes after two years of bankruptcy proceedings and multiple changes to its re-emergence timeline, with SAS finally ending the proceedings with an investment of $1.2bn in new unlisted equity ($475m) and secured convertible debt ($725m).
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CEO Anko van der Werff described it as a “historic day” for SAS, he said: “We have successfully completed our restructuring proceedings and we are now entering a new era.
“It has been a complex process and I’m thankful for the constructive collaboration with creditors and partners, for the valuable support from the Board, as well as impressive efforts, energy and enthusiasm throughout our organization,” he added.
SAS confirmed that it had finalised an exit financing solicitation process with a consortium of investment firm Castlelake, Air France-KLM, Lind Invest, and the Danish State, a group selected as the successful bidders in October 2023.
The new ownership will see Castlelake hold the biggest share in the airline with a 32% stake while the Air France-KLM airline group will hold an initial 19.9% stake in SAS, along with the possibility of becoming a controlling shareholder after a minimum of two years.
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By GlobalDataWhile the airline’s flight operations will largely stay the same, with passenger numbers already on the rise so far for FY24, one significant change brought by SAS’s new ownership will be the move from the Star Alliance loyalty programme to the Air France-KLM lead SkyTeam.
Kåre Schultz, SAS’s new chairman of the board, said: “SAS has done a truly impressive job in navigating through the restructuring proceedings, and in building a competitive business positioned for growth.
“Together with SAS’s new investors, board and management, as well as with our partners in the SkyTeam alliance, we will continue to collaborate with partners and customers to drive transformative changes in aviation.”
The bankruptcy announcement comes during a week of good news for the airline, which has also just secured a new wage deal with its cabin crew in Norway after days of strike action by two labour unions that had been threatening to expand disruption if a deal was not signed.
The new arrangement will see employees gain a 7.5% wage increase as well as more time off and longer meal breaks between flights according to the head of the SAS Norway cabin association at the Parat union.
