In a dramatic turn of events, SAS, the parent company of Scandinavian Airlines, has navigated through stormy legal waters as a New York bankruptcy judge granted approval for the airline’s Chapter 11 reorganization plan to proceed to a crucial creditor vote.
Avoiding Legal Turbulence
The courtroom atmosphere crackled with anticipation as SAS received accolades from U.S. Bankruptcy Judge Michael E. Wiles for skillfully averting what could have been a chaotic legal showdown. Amidst the complexities of SAS’s financial woes, Judge Wiles applauded the parties’ adept handling, describing the potential legal quagmire as averted chaos.
“This was potentially a very contentious and expensive and unduly complicated case,” Judge Wiles remarked, underscoring the magnitude of the legal hurdles SAS successfully surmounted.
SAS Gets Clearance For Ch. 11 Plan Vote: A Saga of Financial Struggles
SAS’s journey to this pivotal moment has been fraught with challenges. The Scandinavian airline behemoth, burdened with a staggering $1.35 billion in debt, sought sanctuary under Chapter 11 protection in July 2022 amidst a perfect storm of a pilot strike, COVID-19 travel restrictions, and industry-wide downturn.
