Scandinavian airline reveals expected allocations for creditors
- SAS to file Chapter 11 plan detailing creditor recoveries
- Up to $325 million expected to be allocated to general unsecured creditors
- $250 million in cash and $75 million in new equity to be allocated
- New equity to be allocated to unsecured creditors including Danish, Norwegian, and Swedish states
- Cash-only recovery for holders of listed commercial hybrid bonds and smaller creditors
- No recovery for subordinated creditors and existing shareholders
SAS has announced that it will file an amended Chapter 11 plan of reorganization with the U.S. Bankruptcy Court, providing details on the expected recoveries for its general unsecured creditors. The plan is set to allocate up to $325 million to these creditors, with $250 million in cash and $75 million in new equity. The new equity will be distributed to unsecured creditors, including the Danish, Norwegian, and Swedish states, as well as key suppliers, pilot unions, and aircraft lessors. Other creditors, such as holders of listed commercial hybrid bonds and smaller claim holders, will receive a cash-only recovery. Holders of the company’s listed commercial hybrid bonds will initially receive a cash recovery of 6.9% to 9.4% of their nominal value, with the possibility of an additional cash distribution of 13.1% to 15.6%. However, subordinated creditors and existing shareholders will not receive any recovery, as all shares and listed commercial hybrid bonds will be cancelled, redeemed, and delisted. SAS filed for Chapter 11 bankruptcy in 2022 and expects to emerge from the process by the end of the first half of 2024.
Public Companies: SAS (N/A), Air France-KLM (N/A)
Private Companies: undefined, undefined
Key People: Dominic Chopping (N/A)
Factuality Level: 8
Justification: The article provides specific details about SAS filing an amended Chapter 11 plan of reorganization and the expected recoveries for its general unsecured creditors. It mentions the allocation of up to $325 million to general unsecured creditors, consisting of cash and new equity. It also mentions the allocation of new equity to specific unsecured creditors and the expected recovery for holders of listed commercial hybrid bonds. The article provides information about the cancellation, redemption, and delisting of shares and bonds, as well as the timeline for SAS to emerge from the Chapter 11 process. Overall, the article presents factual information about SAS’s bankruptcy proceedings and the expected outcomes for creditors.
Noise Level: 7
Justification: The article provides information on SAS filing an amended Chapter 11 plan of reorganization and the expected recoveries for its general unsecured creditors. It mentions the allocation of up to $325 million to general unsecured creditors, consisting of cash and new equity. It also mentions the recovery for holders of the company’s listed commercial hybrid bonds. However, the article lacks in-depth analysis, scientific rigor, and actionable insights. It mainly focuses on the financial restructuring of SAS without exploring the consequences of the decisions on those who bear the risks or providing solutions or new knowledge for the reader to apply.
Financial Relevance: Yes
Financial Markets Impacted: The news article pertains to the financial restructuring and bankruptcy proceedings of SAS, a Scandinavian airline. It provides information on the expected recoveries for general unsecured creditors, allocation of cash and equity, and the cancellation of shares and listed commercial hybrid bonds. This information may be of interest to investors, creditors, and stakeholders in the airline industry.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The news article does not describe any extreme event. It focuses on the financial restructuring and bankruptcy proceedings of SAS, which are significant events for the company and its stakeholders but do not involve an extreme event.
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