OSLO: Scandinavian airline SAS has emerged from Chapter 11 bankruptcy proceedings in the United States with a stronger balance sheet and new owners after a court process lasting more than two years, the company said on Wednesday.
The Sweden-based company restructured more than $2 billion of debt, adjusting its aircraft fleet and delisting its stock in a process that completely wiped out the stakes of its more than 250,000 former owners.
"SAS emerges as a financially robust company with a strengthened capital structure and with substantial liquidity," it said in a statement.
Ongoing cost cuts helped SAS record its highest-ever monthly profitability in July this year, and the company sees opportunities in a growing market, it said without providing further details on earnings.
"Now, we must look ahead and complete the transformation that we have started," CEO Anko van der Werff said.
SAS sought bankruptcy protection in July 2022 after years of struggling with high costs and low demand, leading to a court-approved plan making airline Air France-KLM, hedge fund Castlelake, investment manager Lind Invest and the Danish government its new owners.
The airline had initially forecast the court process would take between nine and 12 months, but this was later revised several times.
SAS exits the court proceedings with a total investment of $1.2 billion in the reorganised group, comprising of $475 million in new unlisted equity and $725 million in secured convertible debt, the company said.
Regional rival Norwegian Air underwent similar restructuring from 2020 to 2021, emerging with a slimmed-down fleet and sharply reduced debt.
On Tuesday, SAS reached a wage deal with its cabin crew in Norway, ending a labour strike over pay and working conditions, which the company said would aid operations. (Reporting by Terje Solsvik in Oslo and Rishabh Jaiswal in Bengaluru; Editing by Mrigank Dhaniwala and Varun H K)