The Swedish Government has put forward a proposal to the Swedish Parliament to support SAS AB with up to SEK 5 billion as part of the company’s necessary recapitalization plan due to the negative effects of COVID-19. In addition, the Danish government has communicated political unity for a recapitalization of SAS.
The company estimates that the recapitalization will encompass new funding need of some SEK 12.5 billion and additional measures. The aim of the recapitalization plan is to ensure that SAS is fully funded and that shareholders equity will be at levels experienced before COVID-19 pandemic when business volumes return to pre-corona levels.
SAS remains in dialogue with selected stakeholders regarding the terms and conditions of the recapitalization plan and the burden sharing measures required by the Swedish and Danish governments. These measures will involve internal, external and financial stakeholders in the company, including the holders of SAS outstanding bonds and hybrid notes. Further details are intended to be announced before the end of June. (US$ = SEK9.31 at time of publication.)
