Scandinavian airline SAS gets U.S. court approval for $700 million financing
2022.09.10 19:00
SAS airplanes are parked at the Oslo Airport Gardermoen, as Scandinavian airlines (SAS) pilots go on strike, Norway July 4, 2022. Beate Oma Dahle/NTB via REUTERS
(Reuters) – Bankrupt Scandinavian airline SAS AB on Friday said it has received U.S. court approval for $700 million of debtor-in-possession (DIP) financing from funds managed by private equity firm Apollo Global Management (NYSE:APO).
The approved credit agreement is a part of the airline’s bankruptcy protection process and its terms will be substantially similar to those announced on Aug. 14, SAS said.
Long-struggling SAS, ravaged by the pandemic and pressured by low-cost rivals, sought bankruptcy protection in July as pilots went on a two-week strike, hoping to emerge within nine to 12 months as a more competitive airline.
Some analysts have said that Apollo could become a major shareholder in SAS by converting the loan to equity at the end of the Chapter 11 process.
