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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)

This article was from Reuters and was legally licensed through the Industry Dive Content Marketplace. Please direct all licensing questions to [email protected].


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Tags: coronavirus recovery, debt crisis, denmark, european airlines, sas airlines, scandinavian airlines, sweden

Photo credit: Part-owned by Sweden and Denmark, Scandinavian Airlines has been struggling for years. Dimitris Vetsikas / Pixabay

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