Compounded by the weight of missed deadlines, SAS faced default after failing to secure approval for its reorganization plan disclosure statement by the stipulated date of November 4, 2023.
SAS Gets Clearance For Ch. 11 Plan Vote: Rescue in Sight
However, hope flickered anew as a lifeline materialized in the form of a $500 million financing package, part of a $1.18 billion rescue endeavor spearheaded by Castlelake LP, Air France, the Danish government, and Lind Invest ApS.
Under the proposed reorganization plan, the consortium’s members stand to claim a substantial stake in the revitalized SAS, alongside a provision for general unsecured creditors to receive a share of $325 million in cash and remaining equity.
SAS Gets Clearance For Ch. 11 Plan Vote: Navigating Objections
At the recent hearing, SAS’s legal team asserted resolution of objections raised by the U.S. Trustee’s Office and brokered a deal with the unsecured creditors committee to assuage concerns regarding the proposed plan.
Of particular contention was the allocation of $220 million to a general unsecured trust, earmarked for potential claims stemming from a court-determined violation of EU rules regarding government aid granted to SAS in 2020.
