US Court permits SAS to operate business throughout Chapter 11 process
Scandinavian carrier SAS received all necessary court approvals to continue operating its business normally throughout the Chapter 11 bankruptcy process.
The approvals were granted to SAS by the US Court for the Southern District of New York on July 7, 2022 and include confirmation that the airline can operate “in the ordinary course”, including by paying staff and vendors and suppliers for goods and services, received on or after July 5, 2022, when it voluntarily filed for bankruptcy protection in the US.
“These court approvals confirm that our operations will continue as usual as we begin our restructuring process in the US,” SAS chief executive (CEO) Anko van der Werff said. “We remain focused on providing the service our customers are used to while accelerating our efforts to implement key elements of our comprehensive business transformation plan.”
The CEO continued: “Ultimately, our plan is about improving our financial position and continuing our more than 75-year legacy as Scandinavia’s leading airline.”
However, the airline warned that even though the Chapter 11 process is moving forward, the SAS flight crew strike, which started on July 4, 2022, will continue to impact the carrier’s flight schedules.
SAS voluntarily filed for Chapter 11 bankruptcy protection in the United States in order to make progress with cost-cutting measures and accelerate its SAS Forward restructuring plan. By the move, the carrier aims to secure additional debtor-in-possession financing for up to $700 million to support its operations through the restructuring process.
