SAS expects mid-July vote on plan to re-organise parent company

Plans for the re-organisation of SAS AB, the parent company of Scandinavian carrier SAS, have been distributed to the affected parties. SAS applied for Swedish re-organisation in late March, and a court approved the measure. The company intends to ask the court to open plan proceedings. It expects a plan hearing – during which affected parties will be able to vote on the re-organisation plan – to take place about three to five weeks after the court decides on opening proceedings. SAS believes this plan hearing will be held around 15 July, but states: “The exact date of the plan hearing will…be decided by the court.” The re-organisation plan includes a description of the company’s debt-settlement proposal. SAS says this is “materially consistent” with that contained in SAS’s restructuring plan under US Chapter 11. General unsecured creditors would receive a modest recovery. Subordinated unsecured creditors would receive no recovery, and there would be no value for existing shareholders. The SAS AB re-organisation plan also features proposed resolutions on issuing new unlisted shares to SAS’s new investors – including Castlelake, Air France-KLM, Lind Invest, and the Danish government – plus certain general unsecured creditors.<br/>