SAS’s parent company formally seeks Swedish re-organisation

Scandinavian carrier SAS’s parent company, SAS AB, has formally filed for re-organisation in Sweden, a measure previously indicated during SAS’s proceedings under US Chapter 11 protection. Successful completion of this re-organisation is a condition for the airline’s Chapter 11 plan, which recently secured US bankruptcy court approval. The company requires clearance from the Stockholm district court to open the re-organisation proceedings. Known as ‘foretagsrekonstruktion’, the Swedish process is an option for viable businesses experiencing short-term financial problems. If the application is accepted the court appoints a reconstructor, to draw up a re-organisation plan, and determines timelines for creditors’ meetings. According to the Swedish court service Sveriges Domstolar a re-organisation is typically conducted over three months, with an option to extend for three months at a time. Only SAS AB is covered by the re-organisation application. Neither the airline nor any other subsidiaries are part of it. “SAS’s operations and flight schedule will remain unaffected by the re-organisation proceeding,” says the carrier. “SAS will continue to serve its customers in the ordinary course throughout this process.”<br/>