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(Sharecast News) - Scandinavian airline SAS has signed a $700m bridging financing deal as it continues to work towards restructuring.
The airline on Sunday said it had signed a deal with US private equity firm Apollo Global Management for cash to fund its reorganisation under U.S. Chapter 11 bankruptcy protection proceedings. Shares in the company surged on the news.
SAS has been weighed down by debt burden that which increased during Covid-19 lockdowns. Apollo looks likely to end up as one of the airline's main shareholders after the $3 billion restructuring is completed.
SAS, owned by Sweden and Denmark, filed for bankruptcy protection in July, a day after most of its pilots started a two-week strike over collective agreements.
Stockholm rejected the plea for more cash but Denmark has said it might write off some debt and inject fresh funds if SAS found support from private-sector investors.
Copenhagen also wants to have a say over a range of decisions to make sure the airline maintains a strong presence at Danish airports, vital for the domestic economy.
Reporting by Frank Prenesti at Sharecast.com