Finland

SAS AB Chief Executive Officer Anko van der Werff said he’s confident the Scandinavian airline will emerge successfully from a chapter 11 restructuring after winning clearance for a $700 million financing package and seeing a rebound in its own performance, Bloomberg News reported. Approval for the Apollo Global Management funding from a US bankruptcy judge is “the biggest and most important news” for SAS and will be “vital” as it seeks to move forward with a new strategic plan, Der Werff said Thursday in an interview in Gothenburg, Sweden.
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Bankruptcy Judge Michael Wiles on Friday approved a $700 million financing package for SAS AB from Apollo Global Management, though he said features of the deal concern him, Bloomberg News reported. The financing, divided into two $350 million draws, will allow Apollo to convert the debt into stock in the bankrupt airline or participate in an equity raise tied to SAS’s eventual exit from chapter 11 protection under certain circumstances. Judge Wiles called the financing “unusual” and questioned whether it was legally viable.
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Finland and Sweden on Sunday announced plans to offer billions of dollars in liquidity guarantees to power companies in their countries after Russia's Gazprom shut the Nord Stream 1 gas pipeline, deepening Europe's energy crisis, Reuters reported. Finland is aiming to offer 10 billion euros ($9.95 billion) and Sweden plans to offer 250 billion Swedish crowns ($23.2 billion) in liquidity guarantees. "This has had the ingredients for a kind of a Lehman Brothers of energy industry," Finnish Economic Affairs Minister Mika Lintila said on Sunday. When Lehman Brothers, the fourth-largest U.S.
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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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Struggling Finnish retailer Stockmann said on Monday it had sold its main department store and head office building in the heart of Helsinki to Finnish pension provider Keva for 400 million euros ($442 million) to pay off debts, Nasdaq.com reported. The 159-year-old retailer initiated a restructuring programme last year to avoid bankruptcy, after struggling for years with debt accumulated from earlier expansions and a consumer shift to online shopping.

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Finland’s ruling coalition came to an agreement on spending plans, averting a collapse of the Nordic nation’s Social Democrat-led government by a thin margin, Bloomberg reported. The five-party cabinet patched up its differences, forging a common vision of how Finland’s recovery from the pandemic should take place, Prime Minister Sanna Marin said. The broad outlines of the deal are now agreed, and the government will continue hammering out the details, she said.

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Struggling Finnish retailer Stockmann plans to sell and lease back its flagship department store properties located in Helsinki, Tallinn and Riga in order to save itself from bankruptcy, it said on Monday, Reuters reported. In April, Stockmann filed for corporate restructuring, a form of administration in which a court appointee is charged with restructuring the company to avoid bankruptcy.

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Finland’s rapid recovery from the economic crisis caused by the coronavirus looks unlikely, but the worst-case scenarios have so far been avoided, Bank of Finland governor Olli Rehn said on Tuesday, Reuters reported. The bank believes Finland’s gross domestic product will contract around 7% this year and grow around 3% in 2021 and 2022, but said GDP contraction could be as little as 5% or as much as 11% in 2020 in alternative scenarios. “Finland has not experienced a sizeable wave of bankruptcies.

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Finland’s Stockmann suffered a 49.1% fall in March sales hurt by the impact of the coronavirus, said the department store operator, which has filed for corporate restructuring, Reuters reported. Its adjusted operating loss widened to 30.5 million euros from 21.4 million a year earlier, it said. Shares in the company were down 4.2% by 0900 GMT. Known for its upmarket department stores, Stockmann has struggled for years in the face of a consumer shift to online shopping, prompting cost cuts and divestments. On April 6, Stockmann announced it would file for corporate restructuring.

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Finnish department store owner Stockmann has decided to file for a corporate restructuring after the drop in customer volumes caused by the coronavirus outbreak, it said on Monday, sending shares in the company down 32%, Reuters reported. Stockmann said its main creditors had given a positive initial response to the move, which is a form of administration in which a court appointee is charged with restructuring the company to avoid bankruptcy.

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