BY Fraser Tennant
In what it hails as a new era for the company, Scandinavian airline SAS has successfully completed its restructuring proceedings and emerged from Chapter 11 bankruptcy in the US, in addition to a similar simultaneous reorganisation process in Sweden.
The airline emerges from Chapter 11 as a financially robust company with a strengthened capital structure and substantial liquidity, having made significant progress with operational improvements and in building a competitive business.
Over the course of the restructuring proceedings – which were supported by nearly all creditors voting in the respective restructuring proceedings in the US and Sweden – SAS has successfully restructured more than $2bn of debt, adjusted its aircraft fleet and related costs and reached agreements with key stakeholders, creditors and vendors.
“We have successfully completed our restructuring proceedings and we are now entering a new era,” said Anko van der Werff, president and chief executive of SAS. “It has been a complex process and I am thankful for the constructive collaboration with creditors and partners, for the valuable support from the board, as well as impressive efforts, energy and enthusiasm throughout our organisation.”
The new principal owners of the reorganised 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, replacing resigning chairman Carsten Dilling.
“I am honoured to be appointed as new chairman of SAS, and I look forward to leading the board’s work as SAS continues its proud legacy as Scandinavia’s leading airline,” said Mr Schultz. “SAS has done a truly impressive job in navigating through the restructuring proceedings, and in building a competitive business positioned for growth.”
This business includes a continued positive development for passenger demand with 18 million passengers traveling with SAS so far in 2024 – a 6.5 percent increase from the same period in 2023.
Mr Schultz concluded: “Together with SAS’ new investors, board and management, we will continue to collaborate with partners and customers to drive transformative changes in aviation.”
News: Scandinavian airline SAS hails 'new era' as it exits US bankruptcy process