Bankrupt Scandinavian airline SAS AB on Friday said it has received U.S. court approval for $700 million of debtor-in-possession (DIP) financing from funds managed by private equity firm Apollo Global Management.
The approved credit agreement is a part of the airline’s bankruptcy protection process and its terms will be substantially similar to those announced on Aug. 14, SAS said.
Long-struggling SAS, ravaged by the pandemic and pressured by low-cost rivals, sought bankruptcy protection in July as pilots went on a two-week strike, hoping to emerge within nine to 12 months as a more competitive airline.
Some analysts have said that Apollo could become a major shareholder in SAS by converting the loan to equity at the end of the Chapter 11 process.
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