SAS has today announced the successful completion of restructuring proceedings, the emergence from Chapter 11 Bankruptcy in the U.S., and exit from the company reorganization process and Sweden.
On Wednesday (August 28, 2024), SAS announced that their restructuring process has been completed with the airline’s emergence from Chapter 11 Bankruptcy in the U.S., as well as from the company reorganization process in Sweden, concluding in a $1.2 billion investment. The exit financing includes $475 million in new unlisted equity and $725 million in secured convertible debt. SAS emerges as a far more competitive and robust airline with a stronger capital structure, a highly experienced management team, and a commitment to driving sustainability in aviation. Customers will also enjoy an attractive new offering, together with the SkyTeam global airline alliance. The new principal owners of the reorganized company includes Castlelake, Air France-KLM, Lind Invest and the Danish State, who have agreed to appoint a new Board led by Kåre Schultz, as Chairman.
The restructuring is part of the carrier’s comprehensive and financial transformation plan, SAS FORWARD. Key pillars of the plan include network and fleet optimization, reducing unit costs, and building a sustainable future. During the reorganization proceedings, SAS restructured over $2.0 billion in debt, adjusted their aircraft fleet and related costs, and also reached agreements with stakeholders, creditors and vendors. Nearly all U.S. and Swedish creditors voting in the respective restructuring proceedings supported the plans, and distributions to creditors entitled to cash, equity, or contingent value notes will take place in the coming month.
In Wednesday’s announcement, SAS’ President and Chief Executive Officer, Anko van der Werff, said,
“This is a historic day that marks the start of an exciting future for SAS’ customers, partners and colleagues. 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. Efforts that made it possible to save and restart one of the finest companies in Scandinavia. Now, we must look ahead and complete the transformation that we have started, continue our commitment to achieving net-zero emissions by 2050, and take advantage of the opportunities in a growing market. We have an excellent team, we are shortly joining the SkyTeam alliance family, and we have every opportunity to remain a leader in our industry for generations to come.”
Also commenting on the completion of the restructuring process, SAS’ outgoing Chairman, Carsten Dilling, said,
“SAS’ emergence from the restructuring proceedings marks a turning point for the company and I will now hand over leadership to a new Board. On behalf of the Board, I would like to thank CEO Anko van der Werff and his team for their hard work, dedication and their commitment to saving this company and in building a strong new foundation for the future. They have done a truly remarkable job. I feel confident that SAS is in good hands to continue connecting Scandinavia with the world and the world with Scandinavia. For me, it has been an honor to help lead SAS through these difficult years to where we are today.”
SAS’ Chairman Designate Kåre Schultz, added,
“I am honoured to be appointed as new Chairman of SAS, and I look forward to leading the Board’s work as SAS continues its proud legacy as Scandinavia’s leading airline. 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’ 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.”
SAS is the leading airline in Scandinavia, with main hubs in Copenhagen, Oslo and Stockholm, and flying to 135 destinations across Europe, the U.S. and Asia. Each year, SAS serves over 25 million passengers and transports 55 tons of cargo, all facilitated by a passionate team of more than 10,000 colleagues. The company aims to be a driving force in sustainable aviation and in the transition towards net zero emissions by 2050. SAS also offers ground handling services, technical maintenance and air cargo services.
Source: SAS/Cision
To our valued readers: We have decided to enhance our visitor experience by eliminating user-targeted ads across our platform (excluding select static display ads). In order to make up for lost revenue, we are transitioning to a reader supported model, without a paywall, annoying pop-ups, or a required subscription. We thank you for your generous support!