Scandinavian airline SAS has been granted approval by a U.S. bankruptcy court to obtain a loan of $450 million from investment firm Castlelake. This financial boost comes as part of SAS’s ongoing efforts to successfully complete its restructuring process. The loan is scheduled to be disbursed between November 15th and 17th, providing vital funds for the airline to repay existing debtor-in-possession financing from Apollo Global Management.
In an effort to overcome its long-standing financial challenges, SAS sought bankruptcy protection in 2022. However, last month, the airline announced that Air France-KLM and Castlelake, a U.S. investment firm, would join the Danish state and Lind Invest as new major shareholders.
SAS recently secured an agreement with the consortium, securing 13.2 billion Swedish crowns ($1.21 billion) in restructuring aid. The forthcoming loan from Castlelake will play a crucial role in refinancing the existing debt owed to Apollo Global Management.
While progress has been made towards restructuring the airline, the final approval of the plan remains pending until a hearing that is scheduled to take place in the New York bankruptcy court on November 21st.
SAS’s successful bid for this loan underscores the confidence Castlelake has in the airline’s ability to successfully navigate its restructuring process and emerge as a stronger player in the industry.
Frequently Asked Questions
What is SAS?
SAS, or Scandinavian Airlines, is an airline that serves as the flag carrier for Denmark, Norway, and Sweden. It operates both domestic and international flights.
What is bankruptcy protection?
Bankruptcy protection is a legal process that allows companies to restructure their debts and financial obligations while providing them with temporary protection against creditors and legal actions.
Who are the major shareholders of SAS?
The major shareholders of SAS include Air France-KLM, Castlelake, the Danish state, and Lind Invest.
How will the loan benefit SAS?
The loan from Castlelake will provide SAS with essential funds to repay existing debt and support its restructuring efforts, enabling the airline to stabilize its financial position and pave the way for future growth and success.