Scandinavian Airlines (SAS) expects to allocate circa $325 million for general unsecured creditors in its second amended chapter 11 plan. The amount consists of $250 million in cash and around $75 million in new equity.
Hybrid bond holders are expected to receive a cumulative return of 25% of their claims as part of the bankruptcy plan. The 25% claim is made up of an initial cash recovery which will amount to up to 9.4% of the nominal value of the claim along with the possibility of receiving an additional cash distribution of up to 15.6%.
However, no recovery plan has been established for subordinated creditors and SAS AB's existing shareholders. Emergence from the chapter 11 process will see all of SAS' common shares and listed commercial hybrid bonds cancelled, redeemed and delisted.
SAS voluntarily filed for chapter 11 bankruptcy in July 2022 with operations and flight schedules operating as usual. It expects to receive court approval of the chapter 11 plan in the first quarter of 2024.
SAS to allocate $325 million for unsecured creditors in second amended chapter 11 plan
