SAS asks court for fourth extension of exclusive plan periods

By Sarah Lizee

Olympia, Wash., Nov. 9 – SAS AB is seeking a 59-day extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the company asked the court to extend the exclusive plan filing period through Jan. 5 and the exclusive solicitation period through March 5.

SAS said the debtors are “on the verge” of starting their plan solicitation and confirmation processes to implement a significant exit financing transaction.

This is the company’s fourth request for an extension. Since the entry of the third exclusivity extension order on Aug. 10, the debtors concluded their equity solicitation process, which was conducted through court-approved equity solicitation procedures.

Following the conclusion of the equity solicitation process, the debtors selected a consortium of bidders including Castlelake, LP, Air France-KLM SA and Lind Invest ApS, together with the Danish State, as the winners with respect to a transaction involving a total investment of $1.2 billion in exchange for the issuance of new equity interests and secured convertible debt by reorganized SAS AB.

An investment agreement was entered on Nov. 4 to memorialize the terms of the transaction.

The company said the transaction aims to maximize the value of the debtors’ estates and recoveries for general unsecured creditors and provide the debtors with much-needed liquidity for restructuring, preserving their business, and reducing their go-forward liabilities.

“With the necessary exit capital committed, the debtors are now well positioned to move forward with the next phase of these Chapter 11 cases, including the filing of a Chapter 11 plan and disclosure statement,” SAS said in the motion.

“Given this substantial progress, as well as the other work accomplished during the past few months, the debtors believe that ample cause exists to extend the exclusive periods.”

A hearing is scheduled for Nov. 29.

SAS is Scandinavia’s leading airline, with main hubs in Copenhagen, Oslo and Stockholm. The company filed bankruptcy on July 5, 2022 under Chapter 11 case number 22-10925.

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