SAS files for Chapter 11 bankruptcy in the US
SAS has filed for Chapter 11 bankruptcy protection in the United States to implement its SAS FORWARD transformation plan. The airline expects to continue normal operations during the process.
SAS AB announced that it and certain subsidiaries have voluntarily filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of New York. This legal process aims to facilitate the implementation of the company's SAS FORWARD transformation plan.
The airline stated that its daily operations and scheduled flights remain unaffected by the filing. SAS aims to fulfill its future business obligations and has SEK 7.8 billion in liquidity as of June 30, 2022. However, an ongoing pilot strike is negatively impacting the company's financial position and liquidity.
SAS is in advanced discussions to secure up to $700 million in debtor-in-possession financing to support operations during the restructuring. The company anticipates completing the Chapter 11 process within 9 to 12 months, during which it plans to restructure debt and raise new equity.
The SAS FORWARD plan is designed to ensure the airline's long-term competitiveness by strengthening its financial position and achieving a sustainable cost structure, targeting approximately SEK 7.5 billion in annual cost reductions.