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SAS: Sweden will not contribute new capital, the stock is at a record low

The Swedish government will not invest new funds in SAS, the industry minister said, hurting the loss-making company, with its share falling 14% to a record low.

SAS said last week that a restructuring plan announced in February depended on raising 9.5 billion kronor ($ 968 million) in cash and converting 20 billion kronor bonds into shares, warning that liquidity problems fail.

But no shareholder, including the main owners Sweden and Denmark with 21.8% each, has committed to the plan.

“We want to make it clear that we will not be investing in SAS in the future,” said Karl-Petter Thorwaldsson.

The minister stressed, however, that he would propose to Parliament that the airline be allowed to convert the bonds it owes to the government into share capital.

Source: Capital

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