SAS and some of its subsidiaries on Tuesday applied for bankruptcy protection in the USA. The airline hires a lawsuit through a so-called Chapter 11 call, according to a stock exchange announcement. In that case, there will be a legal process for financial restructuring under the supervision of a US federal court. The application has been submitted to a court in New York. At a press conference on Tuesday morning, CEO Anko van der Werff said that the application had been planned for a long time, but that it was postponed because they feared losing even more liquidity as a result of the pilot strike. Chairman Carsten Dilling emphasizes that SAS continues to operate as usual during the process. The last two years have been the most difficult for the aviation industry ever, and the future is still unclear. The strike hit the busiest week for SAS before the pandemic. Photo: Mathias Moene Rød Dilling says this is a very well-thought-out decision by the board. – SAS has for many years had a structure that is not competitive, and that has prevented us from reaching the company’s full potential, he says. Meiner strike makes the situation worse – It says a lot of work. We have to cut big costs to become competitive. The ongoing strike makes a difficult situation even tougher, Dilling continues. Van der Werff says they are confident that this process will make the company stronger. – I truly believe that this is the best way forward for SAS, our employees, our customers and society, says van der Werff. The press had many questions for CEO Anko van der Werff and board chairman Carsten Dilling, especially whether the pilot strike was the cause of bankruptcy protection. Photo: Lars Schröder / TT / NTB The CEO also asks the pilots to stop the strike. When asked if the strike is the reason why they applied for bankruptcy protection, Dilling answers “no”. – But of course the strike has put pressure on our liquidity. At the end of the last quarter, SAS had an interest-bearing debt of NOK 40.5 billion. The company writes that bankruptcy protection is their next step in the rescue plan, SAS Forward, which was launched in February. Chapter 11 is the US debt negotiation solution. Bankruptcy protection means that creditors cannot bankrupt the company. Need investors Nyheita on bankruptcy protection comes the day after 900 SAS pilots went on strike. Analysts have come to the conclusion that a strike costs the airline between 80 and 100 million kroner daily. The CEO also expressed concern and disappointment after it became clear that the parties had not reached an agreement. – How in the world should a strike in the high season, while we are looking for investors, help us? asked Anko van der Werff. In a press release, SAS writes that the strike has a negative effect on the company’s liquidity and financial position. – And if it is extended, the effect can be significant, write the company. Furthermore, they write that they are in discussions with a number of potential lenders to secure financing equivalent to 7 billion Swedish kroner. This will support operations through the legal process, which they expect will take 9-12 months. – The pilots are tricked SAS pilots, who went on strike yesterday, react strongly to the news. They mean they are used as a lever in bankruptcy protection. – The pilots are wise, and this reinforces our impression that this is a villa strike on the part of the management – to create a scapegoat, says Roger Klokset, leader of the SAS pilots. Roger Klokset and Martin Lindgren represent the Norwegian and Swedish pilot associations. Photo: CHRIS ANDERSON / TT / NTB Klokset says they have known that SAS has pre-bid a Chapter 11 application since last autumn. – Now we understand better why the goal of a solution has always moved, and why it was impossible to enter into an agreement. Klokset says they will start a dialogue with the SAS leadership in November, and that the responsibility now lies with them. Van der Werff denies that the pilots are used as a lever. – We are looking for investors, and we have our very clear doctor that they will only come in if we do our part, says the CEO, who refers to the SAS Forward plan.
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SAS seeks bankruptcy protection in the USA – news Norway – Overview of news from different parts of the country
