Down Debt

Swedish parliament approves SAS debt conversion plan

Scandinavian Airlines (SAS) Airbus A320 planes are parked at Copenhagen Airport in Kastrup, Denmark March 15, 2020. TT News Agency/Johan Nilsson via REUTERS

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STOCKHOLM, June 21 (Reuters) – Sweden’s parliament on Tuesday approved a government proposal to allow loss-making airline SAS (SAS.ST) to convert debt borrowed from the state into shares, as part of a a process to help save the carrier. of the collapse.

Fighting to survive, SAS, which is partly owned by Sweden and Denmark, is planning a complete reorganization to cut costs, raise 9.5 billion Swedish krona ($942 million) in cash from owners and investors and convert 20 billion debt into equity.

The Swedish government this month suggested to parliament that it agree to the debt swap, but refused to pump more money than it already has into the long-struggling airline. Read more

The Danish government has said it is ready to write off debt and inject more capital, provided private investors also join.

($1 = 10.0887 Swedish krona)

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Reporting by Anna Ringstrom, editing by Terje Solsvik

Our standards: The Thomson Reuters Trust Principles.