For the third time in five years, the BRA Group is undergoing a reconstruction. Despite the Swedish Tax Agency opposing an extension and wanting to stop the process, owner Per G Braathen finally managed to get the district court's approval - after promises of new capital for the struggling airline.
Last fall, Braathens' charter company went bankrupt – a company that was a subcontractor of air travel to charter giants such as Ving. Since the leasing companies, which own the aircraft, then demanded compensation from the parent company, the bankruptcy spread to the entire BRA group, a total of nine companies, which were forced to apply for a reconstruction. This includes the group's operating company, Braathens Regional Airlines (BRA), which has been a subcontractor to SAS since January 2025. According to a seven-year contract, BRA operates several domestic routes for the airline giant, which together account for around 40 percent of SAS's total domestic traffic.
The restructuring was granted by the Solna District Court on October 3. However, within three months, BRA failed to come up with a plan that could be accepted by the creditors and approved by the judge. In early January, the company therefore applied for a three-month extension.
It was extended to ended last week, but according to the Danish flight site Check-in.dk, things were tough. The Swedish Tax Agency opposed the extension, saying that BRA had not presented convincing arguments for how the operation would become financially sustainable. The Tax Agency believes that the requirements must be set particularly high because BRA is now in its third reconstruction process in five years. On previous occasions, debts to the Swedish state of around SEK 488 million have been written down.
The Swedish Tax Agency also points out in its letter that the owners need to come up with new capital if BRA is to be able to pay a dividend to unsecured creditors, as they have promised. There are no such signs, according to the authority. The company is owned by Norwegian financier Per G Braathen through his investment company Braganza to 81 percent, and the remaining shares are owned by AMF.
But after the owners submitted a new reconstruction plan on January 19, the district court finally agreed to extend the period by another three months. An important factor was that Per G Braathen now says he is prepared to provide new capital to the troubled company.
”"We have a clear financial plan to save BRA. This includes a loan of SEK 22 million from my investment company. In addition, I am prepared to provide equity of SEK 100 million. Our assessment is that this is enough for the company to show profitability," he tells Di.
Another important piece of news in the new restructuring plan was that SAS is also offering a loan of SEK 50 million. The airline is also willing to negotiate the long-term agreement with BRA to ensure its survival. Per G Braathen says that he believes that the company will be saved.
”"I'm pretty confident about it, with our new business model the risk in BRA is lower than ever. We have a long-term contract with SAS that provides fixed income and we have the costs under control. But at the same time it's about the airline industry, so there's always uncertainty."”
Source: DI.SE
