Scandinavian Airlines (SAS), the flag-carrying airline of Norway, Denmark and Sweden, has successfully obtained U.S. court approval of its proposed US$700 million (£603 million) debtor-in-possession (DIP) financing credit agreement.
DIP financing is a specific form of financing used when a business has filed for Chapter 11 bankruptcy protection in a U.S. court and is also going through a re-organisational process. The funds will enable the carrier to still meet its financial obligations as an operating airline. The carrier’s restructuring has been detailed in its SAS FORWARD business transformation plan.
The US$700 million credit agreement is with Apollo Global Management, a leading alternative asset manager headquartered in the U.S. which provides companies with innovative capital solutions and support to fund their growth and position businesses for long-term success.
“With the court’s approval of our DIP financing, we are making important progress in our chapter 11 process. The DIP financing agreement with Apollo followed an extensive and competitive process that we conducted to achieve the best financing outcome for SAS, and we are pleased that the Court has approved it,” said Anko van der Werff, President and Chief Executive Officer, SAS.