The airline predicted its cash balance of 7.8 billion Swedish crowns was sufficient to meet its business obligations in the near term. They now trade at deeply distressed levels of around one-third of face value. SAS had three bonds outstanding with a total face value of 5.4 billion Swedish crowns ($519 million). Its finance chief Erno Hilden said in the court filing the airline had so far been unable to renegotiate lease terms, many of which it said were "significantly above" market rates. SAS needs to attract new investors and has said to do that it must slash costs across the company, including for leased planes that stand idle because of closed Russian airspace and a slow recovery in Asia. "For decades, SAS has had too-high costs and too-low productivity compared to its rivals," it said. Wallenberg Investments, SAS's third biggest shareholder with a 3.4% stake, said it supported the decision and would allow for talks to continue to make the airline competitive. ![]() SAS shares can be traded as normal during the bankruptcy proceedings. SAS expects to complete the Chapter 11 process in nine to 12 months, it added. The strike is grounding roughly half the airline's flights, affecting some 30,000 passengers per day, it said.ĭata from flight tracking website FlightAware showed 232 SAS flights - 77% of those scheduled - had been canceled on Tuesday, while Oslo's Gardermoen airport, one of SAS' hubs, had the world's highest cancellation rate on the day. SAS said discussions with lenders regarding another $700 million of financing were "well advanced". "On the other hand, the Chapter 11 request also shows how serious the situation is for SAS." "The pilots may well consider themselves pieces in the puzzle that legalizes the management's Chapter 11 request, and it's doubtful whether it will bring them back to the negotiating table," Sydbank analyst Jacob Pedersen said. Sydbank analysts estimated, in a worst-case scenario, it could erase up to half of its cash flow in the initial four to five weeks alone. The strike will cost it $10 million to $13 million per day, the company said in its court filing. The airline, whose biggest owners are Swedish and Danish taxpayers, said that the strike would have "a negative impact on the liquidity and financial position of the company and, if prolonged, such impact could become material". But the negotiator for SAS' Danish pilots said the scope of the filing showed it had been months in the making and called attempts to blame striking staff for triggering it "beneath contempt". Personal Loans for 670 Credit Score or LowerĬhief Executive Anko van der Werff said the strike had accelerated its decision to file for Chapter 11 status. Personal Loans for 580 Credit Score or Lower Roger Klokset, SAS's pilot union head, responded to the Chapter 11 filing, saying the company never had "the intention of entering into an agreement with the SAS pilots," the Washington Post reported.Best Debt Consolidation Loans for Bad Credit ![]() The union warned of a strike on June 9 after it issued a notice of conflict to the company, but the two sides failed to reach an agreement. The strike comes after failed negotiations over pilot pay and working conditions. The strike will impact 30,000 passengers per day, SAS said.Īt the time of publication on Tuesday, SAS had canceled 236 flights, or 78% of its flights, per FlightAware. However, after SAS's pilot union voted to strike on Monday, the carrier was forced to cancel 51% of its scheduled flights, according to flight-tracking website FlightAware. ![]() SAS said there would be no flight cancellations due to the filing. "We are confident that the actions we are taking will strengthen SAS' ability to capture the significant opportunities ahead as the industry continues to recover from the pandemic." "The process we have commenced will enable SAS to continue our more than 75-year legacy of being integral to Scandinavian infrastructure and societies," SAS board chairman Carsten Dilling said. Account icon An icon in the shape of a person's head and shoulders.
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