AviTrader sponsorship ad

SAS selects Castlelake, Air France-KLM and Lind Invest as winning bidders in Chapter 11 exit financing

SAS has selected the winning bidders for its Chapter 11 financial exit
SAS has selected the winning bidders for its Chapter 11 financial exit © AirTeamImages

SAS has achieved a significant milestone in its ongoing Chapter 11 process within the United States. In this pivotal step, SAS has chosen a consortium led by Castlelake, representing certain funds or affiliates, Air France-KLM, Lind Invest and the Danish state (collectively referred to as the investors) as the winning bidder in its exit financing solicitation process.

The agreed-upon transaction structure encompasses a total investment of US$1,175 million (equivalent to SEK12.925 billion) in the reorganised SAS. This includes US$ 475 million (SEK5.225 billion) in new unlisted equity and US$700 million (SEK7.7 billion) in secured convertible debt. Additionally, Castlelake will provide US$500 million (SEK5.5 billion) for the refinancing of SAS’ existing debtor-in-possession (DIP) term loan. As part of this transaction, SAS intends to eventually transition from the Star Alliance to join the SkyTeam Alliance, of which Air France-KLM is a founding member, pending requisite approvals and its emergence from the Chapter 11 process.

While the details and final documentation for the agreed transaction structure are yet to be formalised between SAS and the investors, this transaction will also require approval as part of SAS’ Chapter 11 plan of reorganisation. The confirmation and implementation of the Chapter 11 plan are contingent on various conditions precedent, including approval by the U.S. Bankruptcy Court for the Southern District of New York (the U.S. Court), solicitation of votes on the Chapter 11 plan from specific creditors, endorsements from various regulatory bodies and the completion of a Swedish company re-organisation. No approval from the existing shareholders of SAS AB is anticipated for this transaction.

Throughout the implementation of this transaction, SAS will continue to operate and serve its customers without interruption. It is anticipated that SAS AB, the publicly listed parent company of the SAS group, will file for a company reorganisation in Sweden (Sw. företagsrekonstruktion) in 2024. As a result of this process, all common shares and listed commercial hybrid bonds of SAS AB are expected to be cancelled, redeemed and delisted, currently projected to occur during the second quarter of 2024. Consequently, existing shareholders in SAS AB are not expected to retain any value and only a modest recovery is anticipated for holders of commercial hybrid bonds.

In parallel with this transaction, following its entry into SkyTeam, SAS AB will seek to establish a commercial cooperation with Air France-KLM and its affiliated airlines, subject to customary approvals. This partnership aims to enhance connectivity and benefit Scandinavian customers.

The transaction structure agreed by SAS and the investors is expected to include, among other things and subject to final documentation, the following key features:

A total investment in the reorganized SAS corresponding to US$1,175 million (SEK12.925 billion), including US$475 million (SEK5.225 billion)in new unlisted equity and US$700 million (SEK7.7 billion) in secured convertible debt, which would result in a shareholder structure post-reorganization (based on total equity, but pre-conversion of the convertible debt) where:

Castlelake holds approximately 32.0% of the equity and 55.1% of the convertible debt;

The Danish State holds approximately 25.8% of the equity and 29.9% of the convertible debt;

Air France-KLM holds approximately 19.9% of the equity and 5.0% of the convertible debt;

Lind Invest holds approximately 8.6% of the equity and 10.0% of the convertible debt and the remaining approximately 13.6% of the equity is most likely to be distributed among and held by certain creditors who may receive recovery in equity. (£1.00 = US$1.22 / SEK13.38)

Friday December 1, 2023
Lufthansa Technik
In a resolute declaration of its commitment to the future of aviation excellence, the Lufthansa Group has officially announced its decision to maintain sole ownership of Lufthansa Technik (LHT). This decision comes as the aviation industry anticipates a dynami... Read More »
Friday December 1, 2023
Canada has selected Boeing’s P-8A Poseidon as its multi-mission aircraft
The Government of Canada has inked a Foreign Military Sales letter of offer and acceptance for the procurement of up to 16 Boeing P-8A Poseidon aircraft, marking a significant milestone in the Canadian Multi-Mission Aircraft (CMMA) project. Canada joins a grou... Read More »
Friday December 1, 2023
Representatives from SAMI and Embraer at the official MoU signing © Embraer
SAMI, the national defence and security leader and a public investment fund (PIF) company, alongside Embraer, has officially signed a memorandum of understanding (MoU) to initiate collaboration in the defence and security sector between Saudi Arabia and Brazil... Read More »
Friday December 1, 2023
Etihad Airbus A380 flying over New York
Etihad Airways has announced the commencement of A380 double-decker flights to New York JFK, beginning in April 2024. “The decision to deploy the A380 on the popular New York route aligns with our commitment to meeting customer demand for increased capac... Read More »
Friday December 1, 2023
The NH90 Sea Tiger for the German Navy on its maiden flight
The first NH90 Sea Tiger embarked on its maiden flight, taking off as scheduled at Airbus Helicopters‘ facility in Donauwörth, Germany. This achievement marks a significant step in fulfilling the German Bundeswehr’s order for 31 NH90 Sea Tiger mul... Read More »
Friday December 1, 2023
eWAS enables SWISS' pilots to anticipate and avoid adverse weather conditions © SITA
SITA eWAS is now deployed across all Swiss International Air Lines’ (SWISS) fleet to enable its pilots to anticipate and avoid adverse weather conditions, like turbulence. SITA eWAS is the only digital weather awareness application on the market today that a... Read More »
Thursday November 30, 2023
Embraer E195-E2 jets in Porter Airlines livery © Embraer
Porter Airlines has exercised its purchase rights to secure a firm order for 25 Embraer E195-E2 passenger jets, supplementing its existing 50 firm orders. The North American carrier plans to utilise these new aircraft to expand its renowned service to various ... Read More »
Thursday November 30, 2023
Image of Eurofighter EK © Airbus
The Eurofighter EK (electronic combat) has received official approval for integration, following recent parliamentary approval by the German budget committee. Airbus, the prime contractor, will equip 15 German Eurofighters with electronic combat capabilities, ... Read More »
Thursday November 30, 2023
Dronamics cargo drone
Dronamics, the first cargo drone airline with a license to operate in Europe, and Qatar Airways Cargo have announced an interline agreement. The partnership marks the first interline agreement between an international airline and a cargo drone airline. The int... Read More »
Thursday November 30, 2023
Heathrow Airport, Terminal 5A
Ferrovial, a leading global infrastructure operator, has released that an agreement has been reached for the sale of its entire stake (c.25%) in FGP Topco, parent company of Heathrow Airport Holdings, for £2,368 million. The current book value of Ferrovial’... Read More »
Thursday November 30, 2023
The European Commission has granted approval for a €833 million (SEK 9.5 billion) state aid measure for the recapitalisation of Scandinavian Airlines System (SAS), a decision made under the State aid COVID Temporary Framework. Originally notified by Denmark ... Read More »
Thursday November 30, 2023
Boeing 737 MAX
The Federal Aviation Administration (FAA) has announced the adoption of a new aircraft certification policy, designating key flight control changes as “major.” This policy shift comes in response to the flight control system implicated in the fatal... Read More »
Wednesday November 29, 2023
Ecojet has signed an agreement for up to 70 hydrogen-electric, zero-emission engines
Ecojet, the newly launched airline with a vision to be the green flag carrier of Britain, has entered into a strategic agreement with ZeroAvia. The collaboration aims to see the deployment of up to 70 hydrogen-electric engines, marking a significant step towar... Read More »
Wednesday November 29, 2023
Lilium jet
Lilium, developer of the first all-electric vertical take-off and landing (eVTOL) jet, has received Design Organization Approval from its primary regulatory authority, the European Union Aviation Safety Agency (EASA). The award marks a major milestone for Lili... Read More »
Wednesday November 29, 2023
Boeing has received an order from the U.S. Air Force for 15 additional KC-46A tankers
Boeing will build an additional 15 KC-46A Pegasus tankers under a Lot 10 contract awarded by the U.S. Air Force valued at US$2.3 billion (£1.8 billion). To date 153 KC-46A multi-mission aerial refuelers are on contract globally, providing advanced capability ... Read More »
Wednesday November 29, 2023
Carina Malmgren Heander
Executive Vice President and Chief of Staff, Carina Malmgren Heander has decided to retire from her position at SAS. She will officially step down from her role on February 1, 2024. However, she will continue to serve as a senior advisor to CEO Anko van der We... Read More »
Wednesday November 29, 2023
easyJet achieved a record performance during summer 2023, despite high fuel costs and the challenges arising from the external operational environment, thanks to initiatives implemented over the past year and a half. Supported by strong consumer demand, the co... Read More »
Wednesday November 29, 2023
H135 helicopter
ÖAMTC Air Rescue and Airbus Helicopters have inked a new contract for two H135 helicopters during the third edition of European Rotors. The announcement follows an initial contract for five H135s signed at the end of 2020. ÖAMTC Air Rescue operates 31 H135 h... Read More »
Wednesday November 29, 2023
Airport security
Grupo EULEN, a leader in providing services and innovative solutions to companies, has announced the signing of three major contracts during this last quarter. These partnerships solidify Grupo EULEN’s position in the U.S. aviation scene and reflect its ... Read More »
Tuesday November 28, 2023
L3Harris corporate headquarters in Florida, U.S.
L3Harris Technologies has finalised an agreement for the acquisition of its Commercial Aviation Solutions (CAS) business by an affiliate of TJC L.P. (formerly known as The Jordan Company) for US$800 million. The deal comprises a US$700 million cash purchase pr... Read More »
AviTrader MRO magazine


Aviation Media Pack

Learn more on how AviTrader can expand your market

Please contact

Tamar Jorssen
Vice President Sales & Marketing
[email protected]
Mailing Address
AviTrader Publications Corp.
Suite 305, South Tower
5811 Cooney Road
Richmond, BC V6X 3M1

Subscribe to the most widely accepted news source in the aviation industry!

Free Daily, Weekly and MRO Publications delivered to your Inbox!
News Alerts, Editorials, Marketplace, Executive Interviews +more

Select publications:

*we respect your privacy and AviTrader will not share your email address to any 3rd Parties.

Scroll to Top