Scandinavia’s SAS is yet to firm timing for accessing a second $350 million tranche of debtor-in-possession financing, which is likely to slip into the second quarter of its fiscal year.
But it stresses that it has sufficient liquidity to maintain operations in the meantime.
SAS reached an agreement last year to obtain $700 million in debtor-in-possession financing, as part of its ‘SAS Forward’ restructuring under US Chapter 11 protection, and drew the initial $350 million tranche in September.
It had expected the remainder of the funding to be available during the carrier’s first quarter – which runs from November 2022 to January 2023.
But SAS says that, while it is “making steady progress” in its Chapter 11 re-organisation, it is still working towards meeting conditions for the debtor-in-possession loan agreement in order to access the second tranche.
It says it is aiming to reach this position “as soon as possible” during the second quarter – which begins on 1 February.
SAS is using the funding to support its comprehensive restructuring, as it seeks to reconfigure its fleet, slash its debt and raise new equity. It is intending to complete the court-supervised process in the second half of this year.