SAS, a Scandinavian airline that filed for bankruptcy in the United States in 2020, has received financial assistance from a consortium of investors.
The airline announced on Tuesday that Air France-KLM and the American investment firm Castlelake would become shareholders in the new company.
In conjunction with the Danish government, their ownership stake in the airline will exceed 75 percent.
The largest airline in Scandinavia, SAS, has announced that it will provide the reorganized company with an infusion of over $1 billion.
Air France-KLM announced a $144.5 million investment and retains the right, subject to financial conditions, to increase its stake after two years and possibly even acquire control of the company.
The analyst further posited that due to the close geographical proximity of Stockholm and Copenhagen bases and the airline's persistent financial losses, SAS may be compelled to relinquish one of these locations.
As a consequence of the financial difficulties, existing shareholders may not be entitled to receive dividends.
The reorganization remains subject to U.S. bankruptcy court approval, given that the airline initially initiated the bankruptcy proceedings in American courts.