SAS AB, the parent company of Sweden-Denmark-Norway flag carrier SAS, has applied in Sweden for company reorganization, subject to approval by the Stockholm District Court. The company stresses that the application is made only in relation to the listed parent company of the SAS Group, SAS AB, and not any subsidiaries or the airline as such. SAS’ operations and flight schedule will remain unaffected by the reorganization proceeding and SAS will continue to serve its customers in the ordinary course throughout this process.

The action follows a Chapter 11 reorganisation application to the U.S. Bankruptcy Court for the Southern District of New York. According to SAS AB, application for company reorganization in Sweden was specifically contemplated by the Chapter 11 plan and a successful completion of the Swedish reorganization proceeding is a condition for the Chapter 11 plan to become effective. The effectiveness of the Chapter 11 Plan also remains subject to approvals from various regulatory authorities and certain other customary conditions precedent.

Over the course of the chapter 11 process, SAS has successfully reconfigured its aircraft fleet and reached amended lease agreements with 15 lessors, representing 59 aircraft. Through the amended lease agreements, SAS expects to achieve the targeted annual cost savings of at least SEK 1.0 billion in reduced aircraft lease expenses and annual cash flow items relating to aircraft financing.

SAS currently expects to emerge from its restructuring proceedings around the end of the first half of 2024.

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