Scandinavian operator SAS has obtained US court approval for its re-organisation plan, keeping it on track for potentially emerging from Chapter 11 bankruptcy protection at the end of the first half of this year.
More than 99% of the company’s creditors that voted on the plan supported it.
SAS filed for US Chapter 11 in July 2022 in order to undergo restructuring through its ‘SAS Forward’ programme.
This restructuring has covered such aspects as reconfiguring its fleet, rearranging debt obligations, and securing a capital injection from investors.
The airline has reached new lease agreements for 59 aircraft sourced from 15 lessors, which will cut annual aircraft expenditure by SKr1 billion ($96 million).
It has also finalised a $1.2 billion exit financing package with a consortium including Castlelake, Air France-KLM, and Lind Invest, as well as the Danish government.
SAS chief Anko van der Werff says the plan “sets a clear path” to emerge from the restructuring proceedings as a competitive and financially-stronger airline.
“We still have work to do but this marks a powerful step towards realizing SAS’s potential to remain at the forefront of the airline industry for years to come,” he adds.
SAS cautions that, while the bankruptcy court has approved its plan, it remains subject to several conditions including regulatory clearance and a restructuring of parent SAS AB.
