Embattled Scandinavian airline SAS and unions representing pilots will resume negotiations on Wednesday to try and agree a new labor deal to end a one-week strike, Reuters reported. SAS has canceled more than 1,200 flights since July 4 when talks with many of its pilots over a new collective bargaining agreement collapsed and they launched the crippling strike. "What has now happened is that we have asked the parties to gather in Stockholm from Wednesday," Swedish mediator Jan Sjolin said.
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A day after its pilots went on strike, SAS, the Scandinavian airline, said on Tuesday that it had filed for chapter 11 bankruptcy protection in the United States, the latest reverberation in a summer of turmoil for European airlines, the New York Times reported. SAS described the filing, made in the U.S. Bankruptcy Court for the Southern District of New York, as the “next step” in a reorganization that would address the money-losing airline’s financial difficulties, including cost reductions of more than $700 million.
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One of the world’s largest aircraft leasing company filed for chapter 11 as it seeks to restructure its finances for the second time since the beginning of the pandemic. Denmark-based Nordic Aviation Capital A/S sought bankruptcy protection to overhaul about $6 billion of debt, Bloomberg News reported. On Sept. 24, the company reached an agreement in principle with creditors to fix its balance sheet. The company listed both assets and debt of between $1 billion and $10 billion, according to court papers filed in U.S. Bankruptcy Court in Richmond, Virginia.
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Nordic Aviation Capital AS is planning to file for chapter 11 bankruptcy this month to carry out its restructuring plan, Bloomberg News reported. The aircraft lessor has shored up support from its largest creditors to implement the plan, said one of the people, who asked not to be identified because the discussions are private. Major creditors have also agreed to provide financing to help fund Nordic Aviation’s operations through bankruptcy.
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Denmark’s government should cut more spending in its 2022 budget to prevent the “booming” economy from overheating, according to its fiscal policy watchdog, Bloomberg News reported. The Economic Councils, often dubbed the Wise Men, raised its 2021 gross domestic product growth forecast to 3.9% versus 2.9% in the spring, reflecting a swift return to pre-pandemic state after ending all economic lockdowns earlier this year. The planned tightening of fiscal policy isn’t enough, the advisory body said in a statement on Tuesday.
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A Danish power trading company has filed for bankruptcy as the unprecedented rally in energy prices across Europe claimed yet another victim. Nordstrom Invest A/S filed a request on Sept. 7 to the Bankruptcy Court in Aarhus, according to the Government Gazette of Denmark, Bloomberg News reported. It comes just days after several energy suppliers in the U.K. ceased trading.
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Danish prosecutors said on Thursday that they had dropped charges against six former Danske Bank employees as part of an investigation into the bank’s involvement in one of the world’s biggest money laundering scandals, Reuters reported. Danske Bank is under investigation in several countries, including the United States, over some 200 billion euros ($246 billion) of suspicious transactions that passed through the bank’s Estonian branch between 2007 and 2015.
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, saying the measure would prevent the Scandinavian airline’s insolvency, Reuters reported. 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.
Norwegian Air on Monday reported that four Swedish and Danish subsidiaries had filed for bankruptcy and that it had ended staffing contracts in Europe and the United States, putting some 4,700 jobs at risk, Reuters reported. The airline is seeking to convert debt to equity, money from shareholders and Norwegian state guarantees in a bid to survive the coronavirus crisis.
A group of international investors managing trillions of dollars in assets has filed what it says is the first in a series of lawsuits against Danske Bank in connection with a money laundering scandal engulfing Denmark’s largest lender, the Irish Times reported. The writ, which was filed on Friday in the district Court of Copenhagen by law firm Nemeth Sigetty Advokatpartnerselskab, is for about 1.5 billion kroner (€197m), according to a statement.