Scandinavian airline SAS emerges from US bankruptcy proceedings after more than 2 years By Reuters

OSLO (Reuters) – Scandinavian airline SAS has emerged from U.S. Chapter 11 bankruptcy proceedings with a stronger balance sheet and new owners after a legal process that lasted more than two years, the company said on Wednesday.

The Sweden-based company has restructured more than $2 billion in debt, adjusting its fleet of planes and shedding its inventory in a process that has completely wiped out the stakes of its more than 250,000 former owners.

“SAS appears as a financially sound company with a consolidated capital structure and substantial liquidity,” it said in a statement.

Continued cost cuts helped SAS post its highest-ever monthly profitability in July this year, and the company sees opportunities in a growing market, it said without giving further earnings details.

“Now we must look ahead and complete the transformation we have started,” said CEO Anko van der Werff.

SAS sought bankruptcy protection in July 2022 after years of struggling with high costs and low demand, leading to a court-approved plan that made airline Air France-KLM, hedge fund Castlelake, the manager of investments Lind Invest and the Danish government its new owners.

The airline had initially estimated that the legal process would take between nine and 12 months, but this has since been revised several times.

SAS is emerging from the legal proceedings with a total investment of $1.2 billion in the reorganized group, comprising $475 million in new unlisted shares and $725 million in secured convertible debt, the company said.

Regional rival Norwegian Air underwent a similar restructuring from 2020 to 2021, emerging with a reduced fleet and drastically reduced debt.

On Tuesday, SAS reached a pay deal with its cabin crew in Norway, ending a strike over pay and working conditions that the company said would help operations.