The airline has successfully completed its restructuring proceedings and emerged from chapter 11 in the US and from Swedish company reorganization, concluding in the investment of USD 1.2 billion. This marks the start of a new era for SAS.
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The company emerges as a competitive and financially robust airline with a strengthened capital structure, a highly dedicated and experienced management team, a commitment to drive transformational change and sustainability in aviation, and an attractive new customer offering together with the global airline alliance SkyTeam. The new principal owners of the reorganized company, Castlelake, Air France-KLM, Lind Invest and the Danish State, have agreed to appoint a new Board of Directors for SAS, which will be led by Kåre Schultz, as Chairman of the Board.
SAS initiated its restructuring proceedings in order to accelerate the implementation of its comprehensive business and financial transformation plan, SAS FORWARD. The aim of SAS FORWARD is to achieve a full transformation of SAS’ business, including optimization of its network and fleet, achieving unit cost competitiveness and building a sustainable future.
Over the course of the restructuring proceedings, SAS has successfully restructured more than USD 2 billion of debt, adjusted its aircraft fleet and related costs and reached agreements with key stakeholders, creditors and vendors. SAS has also successfully concluded a competitive exit financing solicitation process, selecting Castlelake, Air France-KLM and Lind Invest, together with the Danish State, as the winning bidder consortium. The exit financing transaction included a total investment in reorganized SAS of USD 1.2 billion, comprising of USD 475 million in new unlisted equity and USD 725 million in secured convertible debt.
Nearly all creditors voting in the respective restructuring proceedings in the US and Sweden supported the restructuring plans. The restructuring proceedings in both the US and in Sweden have now been successfully completed and distributions to creditors entitled to receive any cash, equity or contingent value notes (as further described in SAS’ previous press releases) are expected to take place during the coming month.
SAS emerges as a financially robust company with a strengthened capital structure and with substantial liquidity. The company has also made significant progress with operational improvements and in building a competitive business:
– A continued positive development for passenger demand with 18 million passengers traveling with SAS so far in fiscal year 2024 (Nov 2023 – July 2024), a 6.5 percent increase from the same period in fiscal year 2023.
– The SAS EuroBonus program now has almost 8 million members and continues to be the leading loyalty program in Scandinavia.
– SAS recorded its highest-ever monthly profitability in July 2024, demonstrating steady progress in achieving the targeted annual cost reduction of approximately SEK 7.5 billion in the SAS FORWARD plan.