SAS selects investor consortium and plans SkyTeam alliance move
Scandinavian Airlines (SAS) has announced a major milestone in its Chapter 11 process in the U.S. by selecting a winning consortium of investors, including Castlelake, Air France-KLM, and Lind Invest.
Scandinavian Airlines (SAS) has reached a significant step in its ongoing Chapter 11 restructuring process in the United States by announcing its chosen investor consortium. The group, which includes Castlelake, Air France-KLM, and Lind Invest, along with the Danish state, will inject substantial capital into the reorganized airline.
The transaction structure involves a total investment of USD 1.175 billion. This comprises USD 475 million in new unlisted equity and USD 700 million in secured convertible debt. Additionally, Castlelake will refinance SAS' existing USD 500 million loan facility.
Following the completion of the Chapter 11 process and regulatory approvals, SAS intends to join the SkyTeam Alliance, a move that will see it exit the Star Alliance. Air France-KLM is a founding member of SkyTeam.
SAS will continue normal operations throughout the restructuring. The company's parent, SAS AB, is expected to initiate a Swedish company reorganization process in 2024. This is anticipated to result in the cancellation and delisting of SAS AB's common shares and hybrid bonds, with no expected recovery for current shareholders.
In parallel, SAS aims to establish a commercial cooperation with Air France-KLM, intended to enhance connectivity for Scandinavian travelers.