The losing bidder was unable to prevent SAS from entering into a binding agreement with the winning group. Thus, the airline’s operation continues without Apollo’s global management.
On Saturday afternoon, SAS wrote in A Stock exchange announcement They are entering into an investment agreement with Castlelake and Air France-KLM. Lind Invest and the Danish state are also participating in the agreement.
By entering into this investment agreement, SAS is taking the next step in the Chapter 11 process in the United States of America. The investment is an important milestone in our SAS Forward plan, and shows that our new investors believe in SAS, says Managing Director Anko van der Werf in a comment on the stock exchange announcement.
The parties have now agreed to invest in the rebuilt SAS for a total of SEK 13.2 billion, compared to SEK 12.9 billion when the non-binding agreement was signed on 3 October.
The new agreement includes $500 million in so-called DIP financing from Castlelake. This financing will replace the existing DIP loan obtained by SAS from US investment firm Apollo Global Management.
The amount corresponds to 5.5 billion Swedish krona.
As a result, Apollo will not be able to continue competing for shares in the airline.
One week after SAS announced the winner of the bidding war, Apollo attempted to stop the $3 million payment, which SAS claimed was absolutely necessary to pay to the winning group.
This corresponds to approximately NOK 33 million.
This payment was crucial for bidders who wished to proceed with negotiations with SAS to sign the final purchase agreement, according to the airline.
SAS President Carsten Dilling and CEO Anko van der Werf met the press at the head office in Stockholm on October 3 to report on the fundraising process and the way forward.
In the process, as SAS gets new owners, among other things, the airline will also be delisted from the stock exchange. Shareholders lose everything
SAS undergoes a process called “Chapter 11” in the USA, where the purpose is to settle debts. The new funds will help facilitate the company’s exit from the legal process.
The binding agreement signed now still needs to be approved by a judge in the US Bankruptcy Court in New York.
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