SAS saved from bankruptcy by group of investors

A group of investors is saving the ailing Scandinavian Airlines from bankruptcy. The group of investors consists of the investment company Castlelake, the airline Air France KLM, Lind Invest with the Danish businessman Henrik Lind and the Danish state, according to a press release.
     In total, investors will invest SEK 12.9 billion in SAS, which is more than the more than nine billion that the airline originally targeted to get out of the Chapter 11 process that the airline is in. According to the press release, the Danish state will increase its ownership share from the current 21.8 percent to 25.8 percent. Together with Denmark, the global investment firm Castlelake will become major shareholders in SAS. Castlelake will have a 32 percent stake, making it the largest stake in SAS. The airline Air France KLM will own approximately 20 percent, while Lind Invest will own just under nine percent. In July 2022,
     SAS went to a US bankruptcy court and filed for bankruptcy protection, a so-called Chapter 11 process, to be initiated. It was intended to protect the company from creditors who want their money immediately while SAS restructures. The court approved SAS’s plans to find new owners.
     At the same time, the current shareholders of SAS will lose their shares, as the shares will become worthless. This is because the shares will be delisted from the stock exchanges in Copenhagen, Stockholm and Oslo. This is expected to happen in the second quarter of 2024, the company wrote in a press release. According to TV 2, the delisting will affect around 255,000 shareholders. /ritzau/
Read SAS’ press release here