SAS has announced its intention to file an amended chapter 11 plan of reorganization (the “Chapter 11 Plan”) along with a related disclosure statement (the “Disclosure Statement”) with the U.S. Bankruptcy Court for the Southern District of New York. This strategic decision is poised to mark a new chapter in the company’s history, outlining key milestones for the chapter 11 process and detailing financial projections for the reorganized SAS.
The Chapter 11 Plan and Disclosure Statement, which are still open to amendments and require court approval, reflect SAS’s robust strategy to navigate its financial restructuring. The plan aims to implement a transaction encompassing a significant investment in the reorganized SAS, totaling USD 1.2 billion. This move is part of the company’s ongoing efforts to stabilize and strengthen its financial position.
In connection with the updated Disclosure Statement, SAS has released financial projections for the fiscal year 2024. These projections are pivotal for understanding the potential financial trajectory of the reorganized SAS. The company expects revenue to surpass SEK 48 billion, with an adjusted EBT ranging from SEK 0.0 to -1.0 billion. Net debt is anticipated to be between SEK 36 – 39 billion prior to the completion of the chapter 11 process, and SEK 22 – 24 billion following it. The liquidity levels are projected to be at least SEK 4 billion before the process concludes, rising to SEK 11 billion thereafter.
It’s important to note that these financial figures are indicative and not guaranteed. They reflect SAS’s current expectations but are subject to various uncertainties and factors such as market demand, foreign exchange rates, and fuel prices. The success of the Chapter 11 Plan is also a crucial determinant of these outcomes.
The projections are based on assumptions including a foreign exchange rate of 10.49 SEK per USD and an average base jet fuel price of USD 830 per metric ton. All figures are consolidated for the SAS Group, offering a comprehensive view of the company’s financial standing.
SAS also reiterates that the chapter 11 process will likely result in modest recoveries for general unsecured creditors, with no recovery for subordinated creditors and no value for existing shareholders. SAS AB’s common shares and listed commercial hybrid bonds are expected to be cancelled, redeemed, and delisted as part of the process.
The Chapter 11 Plan and Disclosure Statement are still subject to further amendments and court approval. SAS aims to receive approval for the Disclosure Statement in February 2024 and for the Chapter 11 Plan in the first quarter of 2024. The effectiveness of the plan is contingent on various conditions, including regulatory approvals and a Swedish company reorganization at the SAS AB level.
For more detailed information regarding SAS’s chapter 11 cases, interested parties can visit SAS’s dedicated restructuring website and access U.S. Court filings and other documents related to the chapter 11 cases on Kroll Restructuring Administration LLC’s website.
SAS’s advisors include global and Swedish legal counsel, investment bankers, and restructuring advisors, illustrating the comprehensive and strategic approach the company is taking in navigating this complex process.
