Airline SAS to file second amended Chapter 11 plan

Scandinavian airline SAS said it would file a second amended Chapter 11 plan of reorganization with the US Bankruptcy Court for the Southern District of New York on Monday and said it had obtained the support of the Official Committee of Unsecured Creditors. The company said it expected about $325m to be allocated to general unsecured creditors as part of the amended plan, consisting of up to $250m in cash and $75m in new equity. The $75m in new equity to be allocated to creditors would be distributed to general unsecured creditors like the Danish, Norwegian, and Swedish states, aircraft lessors, pilot unions, and key suppliers, the company said. Other creditor classes, including holders of the listed commercial hybrid bonds, are expected to receive a cash-only recovery. The airline said that holders of the company's listed commercial hybrid bonds would receive an initial cash recovery of 6.9%–9.4% of the nominal value of claims after emerging from the Chapter 11 process. SAS, Scandinavia's biggest carrier, reiterated that there would be no value for its existing shareholders and all of its common shares and listed commercial hybrid bonds will be cancelled, redeemed and delisted. <br/>