SAS successfully completes restructuring proceedings in Sweden and the US
Mannheimer Swartling congratulates SAS – Scandinavian Airlines – on the successful emergence from its restructuring proceedings in Sweden and in the U.S. We are proud to have provided legal services to SAS over the past 75+ years and we look forward to continuing to do so as SAS enters a new era and remains as Scandinavia’s leading airline.
SAS initiated its restructuring proceedings in order to accelerate the implementation of its comprehensive business and financial transformation plan, SAS FORWARD. The aim of SAS FORWARD is to achieve a full transformation of SAS’ business, including optimisation of its network and fleet, achieving unit cost competitiveness and building a sustainable future. Over the course of the restructuring proceedings, SAS has successfully restructured more than USD 2 billion of debt, adjusted its aircraft fleet and related costs and reached agreements with key stakeholders, creditors and vendors. SAS has also successfully concluded a competitive exit financing solicitation process, selecting Castlelake, Air France-KLM and Lind Invest, together with the Danish State, as the winning bidder consortium. The exit financing transaction included a total investment in reorganised SAS of USD 1.2 billion, comprising of USD 475 million in new unlisted equity and USD 725 million in secured convertible debt.
SAS emerges as a financially robust company with a strengthened capital structure and with substantial liquidity. The company has also made significant progress with operational improvements and in building a competitive business:
- A continued positive development for passenger demand with 18 million passengers travelling with SAS so far in fiscal year 2024 (Nov 2023 – July 2024), a 6.5 percent increase from the same period in fiscal year 2023.
- The SAS EuroBonus programme now has almost 8 million members and continues to be the leading loyalty programme in Scandinavia.
- SAS recorded its highest-ever monthly profitability in July 2024, demonstrating steady progress in achieving the targeted annual cost reduction of approximately SEK 7.5 billion in the SAS FORWARD plan.
