Norway could allow airline SAS to convert debt to equity

Norway will support a plan by airline SAS to convert debt into equity under certain conditions but does not plan to remain a long-term stakeholder, Industry Minister Jan Christian Vestre said on Tuesday. SAS owes the state about 1.5b Norwegian crowns ($153m) from loans made during the COVID-19 pandemic, he said, adding that these can be converted into equity under certain conditions. Vestre did not elaborate on the conditions that must be met, saying this was market-sensitive information. The airline said it "appreciated" the support from the Norwegian government, describing it as an "important step" towards the plan's success. SAS this year set out a plan to cut costs, convert debt and attract fresh cash from equity investors and said that restructuring was needed to prevent the carrier from running out of money. Vestre reiterated that Norway, which sold out of SAS as a shareholder in 2018, will not take part as an investor in any SAS share issue, a position similar to that of the Swedish government.<br/>