Scandinavian airline SAS has successfully exited Chapter 11 bankruptcy proceedings after more than two years, marking a significant milestone in its ongoing transformation. The airline announced its exit on August 28, 2024, having restructured over $2 billion in debt. The new ownership structure includes major stakeholders such as Air France-KLM, Castlelake, Lind Invest, and the Danish government, which collectively contributed to a total investment of $1.2 billion in the reorganized group. This restructuring has resulted in the complete wipeout of stakes held by over 250,000 former owners, a move that underscores the depth of the financial overhaul required to stabilize the airline's operations.
As part of the restructuring, SAS has issued $475 million in new unlisted equity and $725 million in secured convertible debt. The airline's CEO, Anko van der Werff, highlighted that SAS recorded its highest-ever monthly profitability in July 2024, a positive indicator of the airline's recovery trajectory. The successful exit from bankruptcy is a testament to SAS's commitment to transformation and financial stability, as it navigates the challenges of the aviation industry in a post-pandemic landscape. The restructuring aims to position SAS for sustainable growth and improved operational efficiency moving forward.
In related news, Castlelake, a key player in SAS's restructuring, has also been involved in other significant financial maneuvers. Recently, Castlelake formed a joint venture with Sweden's SBB to address its debt issues, involving a loan agreement of 5.7 billion Swedish crowns ($534.36 million) aimed at acquiring properties and refinancing debt. This collaboration reflects Castlelake's active role in the financial sector and its commitment to supporting companies in distress.
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