SAS's rescue has moved a step closer after a U.S. court approved a revised plan from the Scandinavian airline to raise equity, Reuters reported. The long-suffering airline filed for chapter 11 protection last year. The court approval of the fundraising proposal - a key element of the "SAS Forward" rescue plan - means investors may start placing bids for a stake in the airline.
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SAS will not be using the second tranche of its $700 million debtor-in-possession (DIP) term loan in the second quarter of the year, due to stronger than expected development of the airline's liquidity, the airline said on Monday, Reuters reported. SAS may, depending on the development of its liquidity, continue discussions with Apollo regarding access to the second tranche of the DIP term loan at a later stage of the chapter 11 process.
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Scandinavian airline SAS AB said on Thursday it had initiated steps to raise equity and would seek bids as part of its ongoing chapter 11 bankruptcy proceedings in the U.S., Reuters reported. The embattled carrier filed for bankruptcy protection in the U.S. last year as it sought to slash costs and debt amid strikes from pilots after wage talks collapsed. The airline, which earlier aimed to raise SEK 9.5 billion ($911.20 million) in equity financing, now said the final sum would be dependent on the bidding process and generation of additional liquidity by the airline.
Denmark's central bank raised its key interest rate by 0.75 percentage points to 0.65% on Thursday, ending a nearly decade-long experiment of negative interest rates, Reuters reported. "The interest rate increase is a consequence of the increase by the European Central Bank of its main monetary policy rate" the central bank said in a statement. Earlier on Thursday, the ECB raised its benchmark deposit rate by 75 basis points to 0.75% and signaled further hikes.
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Crisis-hit Scandinavian airline SAS sees savings of $200 million through 2026 from a new collective bargaining deal reached with most of its pilots following a crippling two-week strike in July, Reuters reported. The flag carrier, pressured for years by low-cost rivals and ravaged by the pandemic, in February announced a big restructuring plan, and on the second day of the strike sought U.S. bankruptcy protection.
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SAS AB, which is working its way through a chapter 11 restructuring in the U.S., warned that much more needs to be done to persuade stakeholders to invest in the ailing Scandinavian airline, Bloomberg News reported. The airline is also having to overcome the effects of a pilots’ strike and travel disruptions that have hampered its important summer season, just as the price of kerosene has skyrocketed and inflation is accelerating.
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Scandinavian airline SAS said on Saturday it entered into an agreement with Apollo Global Management to raise $700 million of fresh financing it needs to see it through bankruptcy, Reuters reported. The airline filed for bankruptcy protection in the United States in early July to help cut debt after the collapse of wage talks between the airline and its pilots, triggering a 15-day strike that added to travel chaos across Europe. SAS said in a statement it expects to complete the Chapter 11 restructuring process in nine to 12 months.
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Annual inflation in Denmark came at 8.7% last month — rising at the fastest pace since 1983 — while the figure in neighboring Norway reached 6.8%, authorities said Wednesday, the Associated Press reported. Statistics Denmark said the price of goods has increased by an average of 13.2% in the past year, the highest annual increase since February 1982, when the annual increase was the same. Within the goods category, it is to a very large extent price increases on food, electricity, fuel and gas.
SAS and pilot unions have reached a wage deal, the Scandinavian airline confirmed on Tuesday, ending a 15-day strike over a new collective bargaining agreement that had grounded 3,700 flights and put the carrier's future in doubt, Reuters reported. Shares in SAS jumped 12% in early morning trade, but then steadied and were up around 4% at 1223 GMT. They are still down about 40% since the beginning of the year. The airline, which filed for U.S.
SAS said today that a pilot strike now in its 11th day threatened the airline's ability to access bridge financing without which it may be forced to radically downsize or could collapse, Reuters reported. SAS and unions were locked in more talks on Thursday to end a strike among most of its pilots at the peak of the holiday travel season, over conditions related to the Scandinavian carrier's rescue plan. "The strikes ...
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