Airline SAS Says More Bondholders Back Recapitalisation Plan
Swedish-Danish airline SAS has said that a growing number of bondholders have indicated that they back the debt to equity conversions needed for the airline to move ahead with recapitalisation plans to see it through the COVID-19 pandemic.
The airline, which is part-owned by the governments of Sweden and Denmark, is looking to drum up support among bondholders for the conversions on which the owners' cash injections for the 14 billion Swedish crown ($1.61 billion) recapitalisation plan hinge.
The company said in a statement that it has been informed that owners of 72.5% of the bonds and 77.0% of holders of hybrid notes have so far authorised an agent to vote in favour of the conversions.
This represents a sizable increase from earlier this month, when SAS said that holders of 42% of bonds and 53% of hybrid notes supported the plan, and leaves it far closer to securing the necessary support for the scheme to go ahead.
At bondholder meetings scheduled for September 2, at least 80% of the attending nominal amount of the bonds, and at least two thirds of that of the hybrid notes, must vote in favour for the swaps to go ahead.
The recapitalisation plan, which is key to securing the future for a carrier that has been hard hit by the collapse in air travel due to the COVID-19 pandemic, is thereafter subject to approval at an extraordinary shareholders' meeting in late September.