Airline SAS's Rescue Moves Closer as Court Clears Fundraising Plan

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. An SAS spokesperson said that the new procedure reflected court concerns in April about a requirement for bidders to accept the participation of Denmark - the airline's biggest shareholder alongside Sweden - in the equity raising. "That formal requirement has been removed," she said. "But we are clearly stating that the Danish state's support is essential to succeed with SAS Forward and to emerge from the chapter 11 process." That fact would be taken into account when assessing other bids, she said, adding: "SAS' intention remains clear that we are doing this together with Denmark." In the updated plan, SAS said that without the support of Denmark the emergence from chapter 11 "will face significant uncertainty, cost, and delay." Read more.