On 28 June 2024, the European Commission approved restructuring aid to Scandinavian Airlines System AB (SAS) from Sweden and Denmark, as it will enable the company to restore its long-term viability while minimising competition distortions.
The Commission deemed that aid will tackle the main reasons for SAS's current financial difficulties, in particular through the reduction of its indebtedness, the optimisation of its fleet and network, and costs reductions. It also found that SAS makes a considerable own contribution in the form of fresh equity and new convertible debt. In addition, SAS’s existing shareholders and subordinated creditors contribute to burden sharing reducing the amount of aid because all their shares or subordinated debt will be written-off.
RBB assisted SAS in demonstrating that the restructuring plans were in line with the economic framework set out by the EC’s restructuring aid guidelines.
RBB’s team, led by Petter Berg
Petter BergPartner, worked alongside Mannheimer Swartling and Seabury Securities.
