Airline SAS to file second amended Chapter 11 plan
Reuters
Published Feb 05, 2024 02:16
Updated Feb 05, 2024 02:35
(Reuters) -Scandinavian airline SAS said it would file a second amended Chapter 11 plan of reorganization with the U.S. Bankruptcy Court for the Southern District of New York on Monday and said it had obtained the support of the Official Committee of Unsecured Creditors.
The company said it expected about $325 million to be allocated to general unsecured creditors as part of the amended plan, consisting of up to $250 million in cash and $75 million in new equity.
The $75 million in new equity to be allocated to creditors would be distributed to general unsecured creditors like the Danish, Norwegian, and Swedish states, aircraft lessors, pilot unions, and key suppliers, the company said.
Other creditor classes, including holders of the listed commercial hybrid bonds, are expected to receive a cash-only recovery.
The airline said that holders of the company's listed commercial hybrid bonds would receive an initial cash recovery of 6.9%–9.4% of the nominal value of claims after emerging from the Chapter 11 process.
SAS, Scandinavia's biggest carrier, reiterated that there would be no value for its existing shareholders and all of its common shares and listed commercial hybrid bonds will be cancelled, redeemed and delisted.
The long-struggling airline which had filed for bankruptcy protection in mid-2022 after years of struggling with high costs coupled with low demand brought on by the pandemic said it expects to emerge from the chapter 11 process around the end of the first half of 2024.
SAS said last month it expects its net debt to range between 36 billion and 39 billion Swedish crowns prior to emergence from the Chapter 11 process, and between 22 billion Swedish crowns and 24 billion Swedish crowns ($2.09 billion and $2.28 billion) after the process.
($1 = 10.5129 Swedish crowns)
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Written By: Reuters
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