COPENHAGEN, Oct 4 (Reuters) – SAS shares slumped by as noteworthy as 95% on Wednesday after the airline presented a financial restructuring on Tuesday to stop chapter, bringing on board huge modern merchants and wiping out the stakes of its extra than 250,000 owners.
Scandinavia’s biggest provider filed for chapter protection within the United States in mid-2022 after years of battling excessive expenses coupled with low buyer demand exacerbated by the coronavirus pandemic.
SAS (SAS.ST) acknowledged U.S. funding agency Castlelake and Air France-KLM (AIRF.PA) would change into modern necessary shareholders alongside the Danish voice, and that the airline’s stock will likely be delisted from the Stockholm, Copenhagen and Oslo exchanges.
Air France-KLM, for whom the deal is the first since the community consolidated almost Two decades within the past, acknowledged it will diagram to tie SAS flights into these of its contain airways in its Amsterdam and Paris hubs to offer a steal to its Nordic presence.
“Air France-KLM is made up our minds to play an vigorous role within the consolidation of European aviation,” it acknowledged.
Castlelake will rob a stake of about 32%, Air France-KLM will contain around 20%, Danish investor Lind Make investments 8.6% and the Danish voice about 26%, SAS acknowledged, including that the closing fairness will likely be distributed among creditors.
Shares in SAS, which have tumbled nowadays, traded down 83% at 1144 GMT to 0.05 Swedish crowns ($0.0045).
Sydbank analyst Jacob Pedersen acknowledged the incontrovertible fact that the shares peaceful traded at any residual value would possibly per chance well per chance be defined by the capability for apt challenges or investor “overconfidence”.
“Management itself has come out to order there used to be a chance that the shares will change into worthless. Now all of us know the shares will change into worthless,” Pedersen acknowledged.
“Even because it is probably going you’ll well per chance now now not bag somebody noteworthy extra opportunistic and chance averse than your self to sell it to, it is probably going you’ll well well sooner or later stay up with a loss,” he added.
($1 = 11.0295 Swedish crowns)
Reporting by Louise Breusch Rasmussen in Copenhagen, Anna Ringstrom in Stockholm, editing by Terje Solsvik and Alexander Smith
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