Scandinavian Airlines May Get Rescued by Foreign Investors — Reports

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)

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