Plans for the re-organisation of SAS AB, the parent company of Scandinavian carrier SAS, have been distributed to the affected parties.
SAS AB applied for Swedish re-organisation in late March, and a court approved the measure. The company intends to ask the court to open plan proceedings.
It expects a plan hearing – during which affected parties will be able to vote on the re-organisation plan – to take place about three to five weeks after the court decides on opening proceedings.
SAS AB believes this plan hearing will be held around 15 July, but states: “The exact date of the plan hearing will…be decided by the court.”
The re-organisation plan includes a description of the company’s debt-settlement proposal.
SAS AB says this is “materially consistent” with that contained in SAS’s restructuring plan under US Chapter 11.
General unsecured creditors would receive a modest recovery. Subordinated unsecured creditors would receive no recovery, and there would be no value for existing shareholders.
The SAS AB re-organisation plan also features proposed resolutions on issuing new unlisted shares to SAS’s new investors – including Castlelake, Air France-KLM, Lind Invest, and the Danish government – plus certain general unsecured creditors.
Application for SAS AB’s re-organisation in Sweden was a specific part of the Chapter 11 restructuring for SAS, and is a condition for the carrier’s Chapter 11 exit plan to become effective.
“SAS intends to complete the restructuring proceedings in Sweden and the [USA], and fulfil all remaining conditions for the transaction, as soon as possible,” the carrier states, adding that it aims for this to take place during summer this year.
