The bill for SAS for the reconstruction process in the US is now over 600 million kronor.
This includes, among other things, 800-kronor meals for the airline's advisors.
The so-called Chapter 11 process was initiated in an American court in July last year with the aim of getting the state-owned airline, which is more than a fifth owned by the Swedish state, financially sound. So far, some limited progress has been made, in the form of settlements with lessors, for example, but there is still much to be done – SAS expects to be able to complete the court process only in the second half of this year.
This concerns not least the capital raising that is required, which will give the airline SEK 9.5 billion in new equity in addition to the SEK 20 billion in debt that will be converted into capital.
The original plan was to begin the capital raising in January, but that was changed to March. That schedule didn't hold either, and it is now said that the new share issue will be carried out in the second quarter of the year.
Meanwhile, time is ticking the costs for SAS, which during the Chapter 11 process pays hundreds of lawyers, bankers and aviation consultants – both its own, but also those working for the committees representing the creditors.
The bill for these, based on the compensation claims submitted to the court, is now up to approximately SEK 600 million. This includes compensation claims up to and including December and in some cases also January. If the claims for compensation continue at the same level, the final bill for SAS will therefore amount to somewhere between SEK 1 and 2 billion, depending on when in the second half of the year the process can be concluded.
The majority of the costs are purely fees, with most advisors working on an hourly rate. For some individual consultants, this is over $2,000 an hour, equivalent to more than SEK 20,000 an hour. For example, in December, the financial consulting firm FTI – which works for SAS – invoiced for 1,795 working hours, spread over 25 employees, which cost almost $1.6 million, equivalent to around SEK 16 million.
In addition, reimbursement is requested for various forms of expenses, including meals when advisors are either traveling or working overtime. The costs of these meals vary greatly, but it is not uncommon for a consultant to eat – and possibly also drink – for $80, equivalent to approximately SEK 820.
Whether it is reasonable for SAS to pay 820 kronor for a meal for a consultant is not something the airline has an opinion on.
”"We are not able to comment on our advisors' individual expenses. What we can say is that the expenses made are in accordance with the agreements we have with our advisors. These agreements are the advisors' standard agreements and follow the remuneration model that is common practice in the industry," says Anna Sandell, press manager at SAS.
All compensation must be approved by the court. So far, the court has only approved claims up to and including October of last year.
Source: DI.SE
