SAS says Sweden and Denmark support tweaked rescue plan

SAS said Friday its main owners had approved a revised rescue plan after it made changes to a key part of the deal earlier this month to appease holders of its debt. The airline in June agreed a 14b Swedish crown ($1.6b) plan with top shareholders including Sweden and Denmark to shore up its finances amid the coronavirus-related collapse in air travel. But it was forced this month to revise terms of a proposed debt to equity swap in an attempt to secure the agreement of enough debtholders, a condition of unlocking cash injections from Sweden and Denmark. Terms were tweaked for the conversion of 1.5b crowns ($172m) of hybrid notes into common shares, and an option was introduced for holders of a 2.25b crown bond to accept either new commercial hybrid notes or shares. SAS said the revised plan was also supported by its third largest shareholder, the Knut and Alice Wallenberg Foundation. It added that holders of 53% of the hybrid notes and 42% of the bonds now supported the plan, which still has to be approved at noteholder meetings scheduled for Sept. 2. “The future of SAS depends on a successful outcome of the revised recapitalisation plan, as well as delivery on 4 billion crowns in efficiency improvements,” SAS chairman Carsten Dilling said. “The board strongly encourages bond, hybrid and share holders to vote in favour of the proposals...as there are no other available alternatives.”<br/>