SAS applied last week for bankruptcy protection in the USA, a so-called Chapter 11 procedure with the aim of implementing the crisis plan "SAS Forward".

The request was approved by a New York court last Sunday.

According to the company, the Chapter 11 process is "a well-established and flexible legal framework for restructuring companies and has been used by a number of major international airlines for restructuring".

Now SAS announces that it has reached an agreement on financing with the American venture capital company Apollo Global Management.

It is a so-called debtor-in-possession financing of the equivalent of SEK 7.1 billion.

"With this financing, we will have a strong financial position to continue running the current business during our voluntary reconstruction process in the US," says Carsten Dilling, chairman of the board for SAS, in a press release.

The airline expects the US court process to be completed within a year from the start of the proceedings in July.

SAS has previously announced that it has debts of SEK 58 billion.

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Anko van der Werff, President and CEO of SAS, and Carsten Dilling, chairman of the board of SAS, at a press conference where they announce that they will apply for bankruptcy protection in the USA, a so-called Chapter 11 procedure.

Photo: Lars Schröder /TT