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This is a specialized type of bridge financing used by businesses that are restructuring through a chapter 11 process. This DIP financing will enable SAS to continue meeting its obligations throughout the chapter 11 process. It is subject to approval by the U.S. Bankruptcy Court for the Southern District of New York and is structured like a nine-month loan, which can be extended incrementally up to an 18-month term.
“We are pleased to have secured this financing commitment from investment firm Apollo Global Management, which follows an extensive and competitive process”, says Carsten Dilling, Chairman of the Board of SAS. “With this financing, we will have a strong financial position to continue supporting our on-going operations throughout our voluntary restructuring process in the U.S. Apollo Global Management has a long track record of helping build stronger, more competitive businesses and extensive experience in the aviation sector. With their substantial financing commitment, we can now focus entirely on accelerating the implementation our SAS FORWARD plan, and to continue our more than 75-year legacy of being the leading airline in Scandinavia.”
“SAS is one of Europe’s leading airlines and we are pleased to support the business operations as they implement their restructuring plans to emerge a stronger company,” said Apollo Partner Antoine Munfakh. “At Apollo we have a wealth of experience in commercial aviation and fully support the comprehensive SAS FORWARD plan as well as the goals of recapitalizing the Company upon its emergence from the chapter 11 process.”