Authorisation to convert the Swedish government’s state hybrid and loan facilities in SAS

Published

SAS has announced that the company would like to convert debt corresponding to approximately SEK 20 billion into equity in the company. Against that background, the Swedish government has proposed in an additional amending budget that will be adopted today that the Riksdag authorises the Swedish government to convert the Swedish government’s existing state hybrid and the Swedish government’s outstanding loan facilities to shares in SAS. The measures require approval by the Riksdag and the European Commission.

SAS, like the aviation industry in general, has been seriously affected by the protracted pandemic. The reduced travel due to the extensive spread of the covid-19 disease in combination with increased competition has led to a significantly deteriorated financial situation for SAS. As a result, the company has launched a plan for refinancing and restructuring. In order to act responsibly in the Swedish government’s role as a shareholder, the Swedish government proposes that the Riksdag authorises the Swedish government to convert, in whole or in part, the Swedish government’s outstanding claims consisting of the Swedish government’s part of the existing state hybrid in SAS AB (publ) of SEK 2.5 billion (plus accrued interest), and the Swedish government’s outstanding loan facilities to the consortium Scandinavian Airlines System Denmark – Norway – Sweden of SEK 1.5 billion to new shares in SAS.

The measures proposed by the Swedish government require approval by the European Commission. The proposition requires approval by the Riksdag. The government intends to revert with further details.

 

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