SAS creditors to receive fraction of claims

Scandinavian Airlines System (SAS) is edging closer to a comeback with the publication of their repayment proposal for creditors, indicating modest recoveries. According to the plan, creditors are poised to initially receive between 6.9% and 9.4% of their claims, with the possibility of an additional 13.1% to 15.6% in the future. This totals approximately 20-25% of their original receivables. However, those with stakes in SAS subsidiaries are expected to get even less. SAS’s proposal hinges on approval from its creditors and US authorities, with backing from the unsecured creditors’ representatives already in place. The plan could be sanctioned in the current quarter, but no funds are likely to be allocated to SAS shareholders. SAS entered bankruptcy protection 18 months ago following significant debt accumulated during COVID-19 shutdowns and a subsequent pilot strike.