SAS details reorganization plan for Swedish operations
SAS has released a reorganization plan requiring the cancellation of existing shares and a shift in ownership to a new investor group.
SAS AB has distributed its formal reorganization plan to affected parties as part of its ongoing restructuring proceedings in Sweden. The company intends to petition the Stockholm District Court to commence plan proceedings shortly, marking a significant milestone in its efforts to stabilize its balance sheet.
The proposed plan mandates the redemption and cancellation of all existing common shares without compensation to current shareholders. New shares will be issued to a consortium of investors, including Castlelake, Air France-KLM, Lind Invest, and the Danish state. Additionally, certain unsecured creditors will receive equity stakes as partial recovery for their claims.
This restructuring is a prerequisite for the effectiveness of SAS’s previously initiated Chapter 11 proceedings in the U.S. According to the current timeline, the court is expected to hold a plan hearing around mid-July 2024, where affected parties will vote on the proposal.
The debt settlement structure confirms that unsecured creditors will receive only a partial recovery, while subordinated creditors are expected to receive nothing. The company aims to finalize both the Swedish and U.S. proceedings during the summer of 2024.