SAS secures parliamentary clearance for crucial credit facility

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SAS Group has secured parliamentary approval from its three owner states for the investment required to establish a new revolving credit facility that is central to the company's restructuring.

The SKr3.5 billion credit facility is part of SAS Group's restructuring effort 4XNG but the Norwegian, Swedish and Danish parliaments had to clear the scheme. The three states own 50% of SAS and will together contribute half the funding for the facility.

SAS Group had previously obtained union support for 4XNG and the restructuring effort depended only on the parliamentary go-ahead.

"These approvals have now been obtained in all three Scandinavian countries," says the company. "All other conditions are also in place."

SAS Group says a previous credit facility will be replaced by the new one, while bilateral facilities amounting to SKr1.25 billion have been "terminated" because they provided only "limited benefit at a significant financial cost".