The investment would be conditional on the airline opting for cost cuts and financial restructuring. It may not have much of a choice.
A group of foreign investors is exploring a takeover of Scandinavian airline SAS, Swedish financial daily Dagens Industri reported late on Wednesday, citing anonymous sources.
The investors have appointed advisors to help facilitate a takeover, but any investment in SAS would be conditional on cost cuts and a restructuring of the Stockholm-based carrier’s finances, according to the report.
Loss-making SAS on Tuesday said it hopes to convert debt to equity and raise $966 million in new cash, warning of liquidity problems if it falls short.
The carrier, part-owned by Sweden and Denmark, has been struggling for years and on Tuesday said it had not yet made sufficient progress on a restructuring plan presented in February.
(Reporting by Terje Solsvik, editing by Essi Lehto)
Photo credit: Part-owned by Sweden and Denmark, Scandinavian Airlines has been struggling for years. Dimitris Vetsikas / Pixabay