Airline SAS wins $450 million loan approval in US court ruling

Sas AB

09/11/2023 20:34

Nov 9 (Reuters) - A U.S. bankruptcy court ruled on
Thursday that Scandinavian airline SAS  SAS.ST  can receive a
loan next week of $450 million from investment firm Castlelake,
boosting the carrier's effort to complete its restructuring.
    The loan to SAS will paid out between Nov. 15-17, the court
was told by lawyers representing the airline, giving the company
vital funds to repay existing debtor-in-possession financing
from Apollo Global Management.
    Long-struggling SAS, which in 2022 sought bankruptcy
protection, last month announced that Air France-KLM  AIRF.PA 
and U.S. investment firm Castlelake would become new major
shareholders alongside the Danish state and Lind Invest.
    SAS last week said it had secured an agreement with the
consortium for restructuring aid of 13.2 billion Swedish crowns
($1.21 billion), with the Castlelake loan set to refinance the
Apollo debt.
    The New York bankruptcy court is expected to hold a final
hearing on the restructuring plan on Nov. 21.

 (Reporting by Terje Solsvik
Editing by Bill Berkrot)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70))