View of SAS Airbus A321 and A320neo aircraft at Kastrup Airport parked on the tarmac, after pilots of Scandinavian Airlines went on strike, in Kastrup, Denmark July 4, 2022. TT News Agency/Johan Nilsson via REUTERS /File Photo Acquire Licensing Rights
Nov 21 (Reuters) – Scandinavian airline SAS (SAS.ST) said on Tuesday it received U.S. bankruptcy court approval for 13.2 billion Swedish crowns ($1.3 billion) investment agreement with a consortium of Castlelake, Air France-KLM <AIRF.PA,>, Lind Invest and the Danish state.
The company also received final approval for its new debtor-in-possession financing credit agreement with U.S. based Castlelake for a total of about $500 million, boosting the carrier’s effort to complete its restructuring and replacing Apollo Global’s funding.
Earlier in the month, the court had already approved $450 million from Castlelake.
In October, the company said Castlelake would take a stake of about 32%, while Air France-KLM’s will be around 20% and the Danish state will hold about 26%, adding that total investments in the reorganized SAS would amount to $1.16 billion.
Scandinavia’s biggest carrier filed for bankruptcy protection in the United States in mid-2022 after years of struggling with high costs coupled with low customer demand brought on by the pandemic.
($1 = 10.4988 Swedish crowns)
Reporting by Urvi Dugar in Bengaluru; Editing by Stephen Coates
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