STOCKHOLM, Aug 14 (Reuters) – Airline SAS said on Friday its main owners had approved a revised rescue plan after it made changes to a key part of the deal earlier this month.
In June, the airline agreed a 14 billion crown ($1.61 billion) plan with top shareholders including Sweden and Denmark to shore up its finances amid the coronavirus-related collapse in air travel.
It later revised the plan after failing to secure the support of enough debt holders for proposed bond and hybrid note conversions.
“The revised recapitalisation plan is supported by the company’s two largest shareholders, the governments of Sweden and Denmark… and the third largest shareholder, the Knut and Alice Wallenberg Foundation,” it said in a statement.
On Aug. 7, SAS said it had agreed a deal with some investors to convert its debt, a necessary step before Sweden and Denmark would agree to a cash injection.
SAS said on Friday it had reached an agreement in principle with holders of around 53% of hybrid notes and of 41% of bonds for the revised deal.
The conversions require approval at a noteholders’ meeting which is scheduled for Sept. 2.
SAS’ shares were down 3% at 0910 GMT, underperforming the wider market in Stockholm.
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