Aug 13 (Reuters) – Scandinavian airline SAS (SAS.ST) stated on Saturday it entered into an settlement with Apollo International Administration (APO.N) to boost $700 million of recent financing it must see it by chapter.
The airline filed for chapter safety in america in early July to assist minimize debt after the collapse of wage talks between the airline and its pilots, triggering a 15-day strike that added to journey chaos throughout Europe.
SAS stated in an announcement it expects to finish the Chapter 11 restructuring course of in 9 to 12 months. The airline anticipates receiving court docket approval for its $700 million financing by the top of September.
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SAS chief govt Anko van der Werff has stated the strike accelerated its choice to file for Chapter 11 standing. learn extra
The airline has stated the economic motion had price it greater than $145 million, affecting 380,000 passengers within the peak summer season journey season, and would possibly jeopardize the agency’s capacity to safe extra financing.
SAS grounded some 3,700 flights in the course of the strike, saying final week its variety of passengers fell 32% in July from June and capability by 23%.
Swedish, Danish and Norwegian pilot union members, who voted to undertake a collective bargaining settlement reached with SAS final month, say they won’t resume their strike. learn extra
SAS, which was already loss-making earlier than the pandemic on account of rising competitors from low-cost carriers, had stated it wanted to slash prices additional and lift extra capital to outlive.
Whereas the Swedish authorities has rejected the plea for more money, Denmark says it would inject recent funds if SAS additionally finds help from private-sector buyers.
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Reporting by Mrinmay Dey in Bengaluru; Modifying by William Mallard
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