SAS enters into investment settlement with Castlelake, Air France-KLM
The tail fin of a parked Scandinavian Airlines (SAS) airplane is viewed on the tarmac at Copenhagen Airport Kastrup in Copenhagen, Denmark, July 3, 2022. REUTERS/Andrew Kelly/File Photo Compose Licensing Rights
Nov 4 (Reuters) – Scandinavian airline SAS (SAS.ST) secured an investment settlement with a consortium for restructuring abet of 13.2 billion Swedish crowns ($1.21 billion), with a loan from Castlelake changing its old debtor-in-possession financing by Apollo World Management (APO.N), the provider mentioned on Saturday.
The profitable bidder consortium which also entails Air France-KLM (AIRF.PA), Lind Make investments ApS and the Danish converse, elevated its proposed investment by $25.26 million.
In October, the corporate mentioned Castlelake would rob a stake of about 32%, while Air France-KLM’s shall be around 20% and the Danish converse will abet about 26%, adding that total investments in the reorganized SAS would amount to $1.16 billion.
The airline’s credit settlement for $505.25 million with Castlelake shall be weak to refinance its loans, develop liquidity and give a grab to its exit from voluntary restructuring complaints, per the statement.
Air France confirmed the elevated restructuring abet financing.
SAS’s chief govt, Anko van der Werff, mentioned: “By coming into this investment settlement, SAS is taking the next step in its Chapter 11 direction of in the U.S.”
The company now seeks U.S. Court docket approval of the investment settlement and the brand new debtor-in-possession financing as soon as imaginable in November.
In August of final year, the Scandinavian airline entered into an settlement with U.S.-basically based totally mostly investment fund Apollo World to raise $700 million of contemporary financing.
Scandinavia’s superb provider filed for economic spoil protection in the US in mid-2022 after years of combating high charges coupled with low customer seek data from triggered by the pandemic.
Castlelake and Lind Make investments did not straight away respond to a ask for comment.
($1 = 10.8856 Swedish crowns)
Reporting by Gursimran Kaur in Bengaluru
Making improvements to by Emelia Sithole-Matarise, Philippa Fletcher, Ira Iosebashvili and Matthew Lewis
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