SAS secures a $ 700 million mortgage

Right after SAS experienced to file for individual bankruptcy in early July 2022, the airline has now been ready to choose out a $ 700 million financial loan.

In early July, Scandinavian Airlines experienced to file for personal bankruptcy. Considering the fact that then, the Scandinavian airline has been below creditors’ safety less than US regulation and intends to have out a economical restructuring inside of twelve months, which must help save the airline from individual bankruptcy. SAS is now capable to acquire a US $ 700 million bank loan for this. The income arrives from the American investment decision company Apollo World wide Administration Reuters.

Economic restructuring in just 12 months

With the Apollo World Management bank loan, SAS expects to have out the financial restructuring important to continue to keep the airline afloat within 12 months. By the end of September 2022, at the latest, the $ 700 million loan is also expected to be formally authorized by the US courtroom.

Pilot attack with large repercussions

Scandinavian Airlines filed for personal bankruptcy just a person day right after its pilots’ strike. The head of the airline Anko van der Werff explains in retrospect that the determination to just take this measure was accelerated by the protest motion of the cabin crew. With nearly 3,700 flights canceled as a final result of the strike and the Scandinavian airline has very long faced enormous monetary complications, the airline experienced no genuine different.

Many thanks to US personal bankruptcy rules and Chapter 11 polices, the airline now has time to restructure monetarily devoid of force from creditors. With the assistance of the Danish government and non-public buyers, the very low-price tag carrier wishes to stay clear of leaving. Flight operations are presently continuing as common.

Conclusion on the SAS financial loan around US $ 700 million

US investment organization Apollo World Administration has pledged a US $ 700 million financial loan to Scandinavian Airlines. The deal is envisioned to be accredited by the court docket in September. The money will be employed for the monetary restructuring of the enterprise. With the assist of the Danish federal government and other private traders, the Scandinavian airline is attempting to conserve by itself from insolvency in the coming months.