Scandinavia’s largest airline files for bankruptcy to cut debt

The Stockholm-based company said it is in “well advanced” discussions with a number of lenders to secure additional debtor-in-possession financing for up to $700m (€676m)

Scandinavia’s largest airline has been in talks with its creditors to convert 20bn Swedish kronor (€1.85bn) of outstanding debt and hybrid notes into shares, and to raise additional equity for about $1bn (€965m).

Scandinavian airline SAS AB filed for Chapter 11 to tackle its debt burden for a second time in two years as the recovery from the disruption caused by the coronavirus pandemic has been slower than expected.

Scandinavia’s largest airline has been in talks with its creditors to convert 20bn Swedish kronor (€1.85bn) of outstanding debt and hybrid notes into shares, and to raise additional equity for about $1bn (€965m).