SAS Selects Investor Consortium, Prepares for SkyTeam Alliance Entry
Airline SAS has revealed its chosen investor consortium as part of its U.S. Chapter 11 process. The investment totals $1.175 billion and paves the way for the carrier to join the SkyTeam alliance.
Scandinavian Airlines (SAS) has reached a significant milestone in its U.S. Chapter 11 restructuring process by selecting Castlelake, L.P., Air France-KLM S.A., and Lind Invest ApS, along with the Danish state, as the winning bidder consortium for its exit financing.
The agreed transaction involves a total investment of $1.175 billion into the reorganized SAS. This capital includes $475 million in new unlisted equity and $700 million in secured convertible debt. Additionally, Castlelake will refinance SAS' existing $500 million debtor-in-possession loan.
Following the successful completion of this process, SAS is slated to join the SkyTeam Alliance, a move that will see the airline exit its long-standing partnership with Star Alliance. This transition is subject to customary approvals, including from the U.S. Bankruptcy Court.
SAS will maintain its regular operations throughout the implementation of the transaction. The company also anticipates a Swedish corporate reorganization in 2024, which is expected to result in the cancellation and delisting of all existing SAS AB common shares and commercial hybrid bonds, rendering them without value for current shareholders.
Mark Jenkins Business Correspondent, Corporatenews.news