SAS keeps survival hopes aloft with loan
STORY: SAS has kept its survival hopes alive.
The Scandinavian airline has secured new bridge financing to tide it over.
It’s signed a $700 million deal with U.S. private equity firm Apollo Global Management.
That’s to fund its reorganization, after filing for bankruptcy protection back in July.
SAS did so a day after most of its pilots launched a crippling two-week strike.
The airline said the stoppage could scare off investors and threaten its existence.
Shares in the firm jumped as much as 9% on Monday (August 15) following news of the Apollo deal.
The airline was loss-making even before the global health crisis, as a result of competition from low-cost carriers.
It has said it needs to slash costs and raise more capital to survive.
Sweden’s government has rejected the appeal for more cash, but Denmark says it could write off some debt and inject fresh funds.
That’s if SAS finds support from private investors.
On Monday, Copenhagen said it had taken note of the new deal.
