SAS AB announces the plan of reorganization in the company’s ongoing company reorganization proceeding in Sweden. The Reorganization Plan has been distributed to affected parties, and the Company intends to request that the Stockholm District Court decide to open plan proceedings in short order. The Reorganization Plan includes, inter alia, a description of the Company’s debt settlement proposal and proposed resolutions on the company’s (i) issuance of new unlisted shares to the new investors (Castlelake, L.P., on behalf of certain funds or affiliates, Air France-KLM S.A., and Lind Invest ApS, together with the Danish state), as well as certain general unsecured creditors that will receive new shares as a recovery on account of their claims, (ii) redemption and cancellation of all of SAS’s existing common shares, without consideration to the shareholders, (iii) bonus issue without the issuance of shares, and (iv) required changes to the Company’s articles of association.
On March 27, 2024, the company applied for company reorganization in Sweden in accordance with the Swedish Reorganization Act (Sw. lagen (2022:964) om företagsrekonstruktion). On the same date, the Court approved the application, which was later confirmed by the Court at a creditors’ meeting held on April 17, 2024. The Reorganization Plan has today been distributed to affected parties, and the Company intends to request that the Court decide to open plan proceedings in short order. The plan hearing, during which affected parties will have the opportunity to vote on the Reorganization Plan, shall, in accordance with Chapter 4, Section 15 of the Swedish Reorganization Act, be held no earlier than three weeks, and no later than five weeks, after the Court’s decision on the opening of plan proceedings. The company anticipates that the plan hearing will take place around the week commencing July 15, 2024. The exact date of the plan hearing will, however, be decided by the Court. The confirmed date of the plan hearing, as well as instructions for affected parties who wish to participate in the plan hearing, will be announced by the Company through a press release and on the Company’s website, once available.
The debt settlement proposed in the Reorganization Plan, which is materially consistent with the plan of reorganization confirmed as part of SAS’ chapter 11 proceedings in the U.S. (the “Chapter 11 Plan”), provides that the company’s general unsecured creditors (including holders of the Company’s listed commercial hybrid bonds) will receive a modest recovery on account of their claims, that subordinated unsecured creditors will receive no recovery on account of their claims, and that there will be no value for SAS’s existing shareholders. The final recovery levels for general unsecured creditors are subject to change and dependent on various factors, including fluctuations in the SEK/USD exchange rate, potential changes to the creditor base eligible for recovery and their claim amounts, and the final outcome with respect to SAS’ potential obligation to pay interest relating to the state aid received in connection with the 2020 recapitalization.
Application for company reorganization in Sweden was specifically contemplated by the Chapter 11 Plan and a successful completion of the company reorganization proceeding is a condition precedent 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. SAS intends to complete the restructuring proceedings in Sweden and the U.S., and fulfill all remaining conditions for the transaction, as soon as possible. SAS aims for this to occur during the summer of 2024, but this timetable may change.
SAS for Business will from June 11 go under the name SAS for Work and will offer several updates to improve and enhance the experience of all types of business trips – for both the passenger and the company.
Starting June 11 all SAS’ business travelers will enjoy several unique benefits in SAS’ improved SAS for Work service. The benefits and upgrades include free name change and free seating in SAS Business and SAS Plus.
“We believe that some meetings need to be in person, when people meet great things usually happen. We want to make the experience of travel for work easier and smoother for the person traveling, but also for the company and these updates will do just that. We continue to offer different alternatives with biofuel and are excited to continue launching upgrades and new benefits during fall”, says Paul Verhagen, Chief Commercial Officer at SAS.
SAS will also improve the Travel Pass Corporate product with additional discounts in SAS Plus. As always, customers will have a wide range of options to reduce their carbon footprint, such as tickets including biofuel, a Travel Pass with biofuel and the wider Corporate Sustainability Program.
The article Plan of reorganization in SAS AB’s company announced first appeared in TravelDailyNews International.