Scandinavia’s SAS has obtained court approval for the $700 million bridge financing agreed with funding firm Apollo Global Management.
SAS, which is restructuring under US Chapter 11 protection, had disclosed on 14 August that it had secured the provision agreement for debtor-in-possession financing.
The company says the court approval for the funding is on terms “substantially similar” to those detailed in the earlier disclosure.
SAS states that the court “has indicated that it will enter an order approving the debtor-in-possession financing shortly”.
The company is using Chapter 11 arrangements to push through its ‘SAS Forward’ restructuring scheme, and the bridge financing will enable it to meet obligations during this process.
Chief executive Anko van der Werff says the approval is “important”, adding: “We continue to make progress with the ‘SAS Forward’ plan, and our work to build a competitive and even better airline for our customers.”
SAS is intending to raise at least SKr9.5 billion ($894 million) in new equity capital, reduce or convert more than SKr20 billion of debt into equity.