SAS states that negotiations on the ongoing restructuring have so far "produced limited results" while "much remains to be done before SAS management and the board can announce that the plan has been successfully implemented," the company writes in a press release.
In connection with SAS's first-quarter report, which was released on February 22, the airline launched a new rescue plan that will lead to annual cost savings of SEK 7.5 billion by the 2025/2026 financial year.
In a press release on Friday, the company writes that much remains before the plan is completed.
”"SAS management and advisors have discussed with specific stakeholder groups the need to fully participate in an extrajudicial process, to achieve a competitive cost structure and obtain support from financial parties both for the conversion of all debt to equity and the acquisition of new equity. Unfortunately, the negotiations have so far yielded limited results and much remains before SAS management and the board can announce that the plan has been successfully implemented," SAS writes.
For this ambition to succeed, SAS is completely dependent on the ability to reduce debt while at the same time raising "significant amounts of new equity".
”"Both are directly dependent on SAS management and key stakeholders working together (…)," the company writes.
SAS shares are trading down nearly 3 percent after the announcement, after falling around 1 percent earlier in the day.
Source: DI.SE
