EU approves $1.2 billion Danish, Swedish measure to recapitalise airline SAS
Reuters
Published Aug 17, 2020 18:03
BRUSSELS (Reuters) - EU competition regulators on Monday cleared a 1-billion-euro ($1.2 billion)(915.40 million pounds) plan by Denmark and Sweden to recapitalise virus-hit SAS (ST:SAS), saying the measure would prevent the Scandinavian airline's insolvency.
The plan is part of a larger recapitalisation package which will result in private investors holding a significant stake in SAS following the conversion of outstanding privately-held debt instruments into equity.
The European Commission said the measure will not exceed the minimum needed to ensure the airline's viability and will not go beyond restoring its capital position before the coronavirus.
"Denmark and Sweden will receive an appropriate remuneration for the investment, and there are additional mechanisms to incentivise SAS to redeem the States' equity participations and the new State hybrid notes obtained as a result of the recapitalisation," the EU competition enforcer said in a statement.
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Written By: Reuters
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