Scandinavian airline SAS posted a second-quarter pretax loss that more than doubled from a year earlier on Thursday, while pledging to complete its restructuring this summer, Reuters reported. The company's chapter 11 plan of reorganisation was approved in March. It filed for U.S. bankruptcy protection in 2022 after years of struggle with high costs coupled with low customer demand, exacerbated by the COVID-19 pandemic. "We look forward to emerging as a competitive and financially stronger airline with a stable equity structure," CEO Anko van der Werff said in a statement.
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Sweden
Scandinavian airline SAS posted a second-quarter pretax loss that more than doubled from a year earlier on Thursday, while pledging to complete its restructuring this summer, Reuters reported. The company's chapter 11 plan of reorganization was approved in March. It filed for U.S. bankruptcy protection in 2022 after years of struggle with high costs coupled with low customer demand, exacerbated by the COVID-19 pandemic. "We look forward to emerging as a competitive and financially stronger airline with a stable equity structure," CEO Anko van der Werff said in a statement.
Swedish homebuilders should start to recover later this year, boosted by the central bank’s decision to cut interest rates before its Eurozone and U.S. peers, Bloomberg News reported. The value of orders is expected to tick up for Sweden’s three largest homebuilders, Skanska AB, Peab AB and NCC AB, brightening the outlook for the industry in the Nordic country. “I would expect new starts to gradually pick up through 2024,” Kepler Cheuvreux analyst Albin Sandberg said in an email, while cautioning that it will “probably take some time” before that turns into stronger demand for new builds.
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Sweden’s central bank lowered its key interest rate for the first time in more than eight years on Wednesday, underlining the readiness of European policy makers to move ahead of the Federal Reserve as inflation cools, the Wall Street Journal reported. The Riksbank cut its key rate to 3.75% from 4.0% becoming only the second central bank from a rich, advanced economy to begin its easing cycle following the post-pandemic surge in inflation. Switzerland’s central bank was the first to move in March. This century, Europe has typically followed the U.S. in lowering borrowing costs.
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Bankruptcies in Sweden extended their streak of annual increases to 21 months in April, according to data from Creditsafe, which expects no immediate relief even as inflation slows and rate cuts are approaching, Bloomberg News reported. The number of bankruptcies was 72% higher in April than a year ago, the credit reference agency said in a statement. The increase was led by e-commerce, real estate, hotels and restaurants, and 942 companies went bankrupt last month, marking the highest number in a month of April since 1994.
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Sweden’s worst slump in home construction in more than three decades is over for now, a gauge of housing starts in the largest Nordic nation suggests, Bloomberg News reported. An indicator from data provider Byggfakta published Wednesday was largely unchanged in March, signaling that activity in the sector is stabilizing following two years of sharp declines from August 2021. “The housing indicator is making it increasingly clear that construction starts have bottomed, and even recovered somewhat in the last six months,” Tor Borg, head of analysis at Byggfakta said in a statement.
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The Swedish construction industry is facing a severe downturn, with an increase in bankruptcy filings signaling a broader economic turmoil within the sector, according to PressKraft.se. Credit reference agencies have observed a significant uptick in the number of companies seeking bankruptcy protection. Data from January indicated a 47% increase compared to the same period a year prior, with 622 companies filing for insolvency. This surge in bankruptcies is symptomatic of a deeper crisis affecting builders and has notable repercussions for the Swedish economy at large.
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Sweden’s Riksbank asked lawmakers to restore its equity after the central bank posted large losses on bonds amassed during a period of slow inflation, Bloomberg News reported. The central bank needs a capital injection of 43.7 billion Swedish kronor ($4.1 billion) to bring its equity to the basic level required by law, according to a proposal it submitted on Tuesday. The need for a recapitalization comes as central banks around the world have seen assets bought as part of quantitative-easing programs lose value.
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Cerberus Capital Management LP and Intrum AB are considering a more extensive partnership as the Swedish debt collector explores options to address its borrowings, Bloomberg News reported. The U.S. alternative investor is looking at further ways to invest in Intrum and its assets after buying a portfolio from the company earlier this year, said people familiar with the matter. Talks are preliminary and might not yield any outcome, said the people, who asked not to be identified as the details are private.
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Multiple bidders have put in offers to buy the business and assets of bankrupt Swedish textile recycler Renewcell, the company’s bankruptcy trustee said Thursday, BoF reported. The process has been closely watched by many in the industry, keen to see a business that represented one of fashion’s most advanced prospects to meet increasing demand for circular fibres revived. The nature of the bids and the names of the bidders were not disclosed. A final closing is expected mid-April following a review process.