Scandinavian Airlines has received approval for its rehabilitation plan from the United States Bankruptcy Court for the Southern District of New York.
The approval is based on certain prerequisites, including the approval of the authorities and the completion of the company rehabilitation procedure in Sweden, allowing the company to emerge from the proceedings by the first half of 2024 without affecting operations.
As part of its business reorganization plan, SAS FORWARD, Scandinavian Airlines had applied for protection under Chapter 11 of the U.S. Federal Bankruptcy Code, aiming for debt reduction and capital restructuring. The airline has already agreed on contract modifications with 15 leasing companies that own a total of 59 aircraft. An investment agreement has also been concluded with a consortium that includes Air France-KLM, resulting in a total investment of 1.2 billion U.S. dollars.
Furthermore, Scandinavian Airlines is expected to leave the Star Alliance and join SkyTeam, which includes airlines such as Air France and KLM Royal Dutch Airlines.
