Scandinavian carrier SAS has emerged from US Chapter 11 proceedings, just over two years after filing to restructure under bankruptcy protection.
It has completed company re-organisation both under US and Swedish procedures, enabling the finalisation of a $1.2 billion investment by a consortium including Castlelake and Air France-KLM Group, as well as the Danish government and Lind Invest.
“We are now entering a new era,” says SAS chief executive Anko van der Werff, adding that the collective effort throughout the “complex process” – with the support of creditors and partners – has “made it possible to save and restart one of the finest companies in Scandinavia”.
New board members will be appointed to the company including Kare Schultz, who will take over as chair from Carsten Dilling.
Schultz says the company has “done a truly impressive job” steering its way through the restructuring in order to establish a more competitive foundation.
SAS filed for Chapter 11 protection in July 2022 in order to push through its ‘SAS Forward’ restructuring scheme.
This included reshaping its fleet and network, re-organising debt and costs, and negotiating new arrangements with vendors and creditors.
Alongside the US proceedings the carrier’s parent company, SAS AB, underwent its own re-organisation in Sweden, approval for which was secured in July and resulted in the delisting of its shares from Scandinavian exchanges.
SAS says “nearly all creditors” voting in the US and Swedish restructuring proceedings supported the plans.
Distribution of returns to creditors and other entitled stakeholders are expected to take place over the next month, it adds.
“SAS emerges as a financially robust company with a strengthened capital structure and with substantial liquidity,” the carrier states.
“The company has also made significant progress with operational improvements and in building a competitive business.”
It points out that it achieved its “highest-ever” monthly profitability in July this year – evidence, it claims, of the “steady progress” towards its annual cost-reduction targets.
With Air France-KLM as a shareholder, taking a 19.9% stake, SAS is set to leave Star Alliance, of which it was a founding member, and join SkyTeam on 1 September.
