SAS must wait to be approved for the vital bridge loan of 7 billion kronor, writes Dagens Næringsliv.
Advisors to the troubled airline failed to convince the bankruptcy court in New York on Wednesday evening, and instead a new decision is expected on Friday.
On Wednesday evening Swedish time, negotiations began regarding the bridge financing that SAS depends on to get through the so-called Chapter 11 process regarding bankruptcy protection in the USA, writes the Norwegian newspaper Dagens Næringsliv.
The loan is equivalent to SEK 7 billion and the American asset manager Apollo Global Management is responsible for the entire credit. The bridge financing has been described as expensive as the interest rate that applies from the start is double-digit, while a long list of other clauses can entail additional costs.
Bankruptcy Court Judge Michael E. Wiles noted Wednesday night that the loan agreement contains many terms and conditions. He noted, among other things, that Apollo will have many advantages when SAS refinances at a later date. According to him, there is much evidence that Apollo will be secured an opportunity to buy shares in the airline – without a competing offer from another investor.
SAS's advisors have repeatedly argued for the emergency loan to be approved. An initial disbursement of $350 million, equivalent to 3.7 billion kronor, is scheduled to be made next week, which is described as necessary for SAS to be able to reimburse travelers affected by the pilot strike in July.
In the end, the judge chose to postpone the decision to approve Apollo as a lender. A new announcement is expected on Friday evening when new negotiations will take place, the Norwegian newspaper writes.
Source: DI.SE
