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SAS present crisis plan as the Scandinavian States given green light for financial support for the company

Monday, 12 November 2012
Airline company, SAS is to borrow money from the banks, but also the principal owners will help the company set it up. First, the new collective bargaining agreement has to be concluded and the Scandinavian parliaments approve the plan.

SAS is to get a new credit facility of Skr 3.5 billion from banks and major shareholders to ensure financial preparedness. However, it is conditional on the new collective bargaining agreement is concluded and parliamentary approvals, the company said in a statement.

SAS has credit of Skr4.7 billion, which expires at the end of June next year.

Added to this is that the governments of Sweden, Denmark and Norway have received clearance from the European Union to provide state guarantees to the banks to renew loans to the airline SAS, according to the Swedish business daily, Dagens Industri.

Swedish television report that the Swedish Minister for Financial Markets, Peter Norman himself had called around to the various banks' boards to get them to agree to extend loans to SAS.

On Friday, the European Commission confirmed that there were informal conversations about SAS financing by the three governments.

The company will this morning present its deferred quarterly report and the future of the program which is expected to show big savings, which is reported to have been completed over the weekend.
by Scancomark.com Team

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