SAS Airlines said it hoped to convert bonds into shares and raise 9.5 billion kronor ($ 973 million) in new capital, warning of liquidity problems if it failed, as it announced a contraction in losses compared to the previous year.
The airline, which is jointly owned by Sweden and Denmark, has been struggling for years, and in February unveiled a major new restructuring plan that it said was based on raising new capital (unspecified amount).
“In addition to reducing cost structure and improving efficiency, SAS is seeking to convert approximately 20 billion kronor into bonds and hybrid securities into common equity, and will also seek to raise no less than 9.5 billion kroner. in new shares “, stressed SAS.
However, the chief executive told analysts during a call that there had been no significant progress so far in the restructuring plans, and both governments declined to say whether they would pay again after agreeing to a 3 3 billion bailout deal with the company in 2020.
The company’s share is down 7% after the announcement that discussions with stakeholders as a whole had made “limited progress”.
For the quarter, the company announced losses before taxes of 1.56 billion kroner compared to losses of 2.33 billion kronor a year ago.
Source: Capital
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